Finance
Minister S.Bayartsogt has submitted to D.Demberel, Speaker of Parliament, a
draft amendment to the law on minerals, seeking to impose higher royalty rates
for mineral resources. Many countries already have royalty rates of up to 10
percent depending on the type of mineral, the output volume, and the market
price. 

The
Mongolian proposal is to have a graduated rate of royalty. The present basic
rate of 5% will remain unchanged, and the additions proposed will not exceed another
5%, thus making the maximum royalty payable 10 percent. The royalty will apply
to 12 minerals, including copper, gold, molybdenum, iron ore and coal.

The
government hopes to earn MNT80 billion a year from the new measures initially.
The amount is likely to go up if present trends in commodity prices continue
and as production picks up in Mongolia following strategic mining projects going
on steam.