Montsame reports that Mongolia has shifted its Mineral Resource Royalty (MRRL) calculation to use trading prices from the Mining Commodity Exchange or the Mongolian Stock Exchange, replacing international reference prices.
The change aims to align royalties with actual realised prices after miners argued prior assessments were on average 22.6% above market for products such as enriched coking coal, fluorspar 54.3% and iron ore.
The policy applies through year-end; companies selling at least 25% on the exchange must value all output at MSE prices.
Officials project about MNT 100 billion in additional budget revenue, while the industry has asked for more time and flagged risks of double MRRL collection.
QARAS Insights:
From our Ulaanbaatar position, we see this as a transparency step that will influence term-sheet design for fluorspar buyers.
Exchange-linked royalty bases mean fewer disputes over “reference vs realised” pricing on CaF2 cargos, but transition volatility is likely while methodologies and exchange liquidity settle.
We are advising counterparties to: link royalty pass-throughs to MSE settlement prints; include price-adjustment language for assays and moisture so declared value and customs value reconcile cleanly; stipulate evidence of MRRL payment receipts in the shipping docs pack; and add a specific clause guarding against double MRRL in multi-party chains.
Operationally, the 25% on-exchange threshold may nudge sellers toward periodic auctions, which affects shipment pacing and indexation windows.
For fluorspar, this could tighten alignment between the domestic declared value and the FOB basis, improving bankability of LCs and reducing valuation haircuts.
We handle mine-gate sampling and third-party verification, align USD/MNT conversions with exchange timestamps, and coordinate rail and road routes to Chinese borders or alternative EU-bound corridors, keeping compliance central to every step. Our role remains the same: direct access to mine owners, transparent testing and logistics, and structuring that turns Mongolia’s policy changes into predictable, compliant procurement for global buyers.
–
Original Article: https://montsame.mn/en/read/376915
