As part of the implementation of the Law on Mining Products Exchange and related Government resolutions issued per it, copper concentrates to be exported will be traded on the Commodities Exchange from April 2024.
Please note that preparations have been made in connection with this process, and the following general principles should be followed by enterprises participating in the copper concentrate trade.
It includes:
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Pricing principle: By the pricing principle, the initial call price is determined by referencing the world market price of metallic copper with a copper content of 99.99% in the concentrate. Moreover, the copper treatment charge (T/C) is fixed at $15, while the copper refining charge (R/C) stands at $8. Furthermore, a deduction of 0.5% is subtracted from the concentrated content for the metal deduction, ultimately leading to the determination of the price for one ton of concentrate.
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Trading principle: Before the start of trading, an auction schedule will be uploaded to the website of "Mongolian Stock Exchange" JSC five business days in advance. This schedule will outline the trading day and time, quantity of products, lot size, product quality information, contract period, minimum call price, delivery and shipping conditions, as well as the deposit amount.
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Deposit: The deposit amount is announced depending on the order quantity, minimum call price, and trading conditions submitted by the seller. The deposit is at least 5% for spot trading, and at least 10% for forward trading.
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Guarantee: After the seller delivers the traded product to the buyer and submits the deed of acceptance of the product, the deposit placed in the exchange will be transferred to the seller.
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Product delivery point and delivery conditions: DAP Erlian Station, Erlian City, China
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Product delivery time: For spot contract, within 30 days after contract payment, and forward contract can be effective up to 12 months.
Note: "Mongolian Stock Exchange" JSC is authorized to organize the trading of the commodities, and the rules and regulations related to participation in trading can be found at the link https://mse.mn/mn/content/list/253 , and trading announcements and schedules can be found at https://mse.mn/mn/auction_schedules/252.
MONGOLIAN STOCK EXCHANGE