In accordance with Resolution No. 345 of the Government of Mongolia, dated September 13, 2023, amendments have been implemented to attachment No. 2 of Government Resolution No. 81, titled "Announcement on the name of sources of exchange and market price," dated February 1, 2016, and the Mongolian Stock Exchange trading price information will serve as a basis for determining the royalty applicable to mining products traded through the Mongolian Stock Exchange, effective from October 1, 2023.

According to clauses 47.3.3 and 47.17 of the Minerals Law of Mongolia, royalties for mining products in Mongolia are calculated in an amount equal to 5–10 percent of the sales value of the mining products, and when calculating the sales value, it was regulated to use the price information published in international sources such as www.sxcoal.com, www.umetal.com, and www.indmin.com regardless of whether the products were traded on the Mongolian Stock Exchange.

Therefore, as a result of this decision, mining product exporting companies have gained the ability to remit royalties for their mining products in accordance with the trading price information of the exchange, such as coal, iron, and fluorspar, which are traded on the Mongolian Stock Exchange. This decision is expected to have a favorable impact on enhancing transparency within the mining industry and fostering an increase in the number of companies engaging in the transparent and public sale of their products through the Exchange.

The Mongolian Stock Exchange traded a total of 6.8 million tons of six types of coal and 94.6 thousand tons of two types of iron concentrate for a total of 2.9 trillion MNT through 141 trading sessions from January 12 to September 27, 2023. As a result of the trade, the minimum price of the product increased by 50 percent, and the sales revenue of the selling companies increased by 247.5 billion MNT.

Please click here to see the government's resolution.

MONGOLIAN STOCK EXCHANGE