Mineral Export Floor Prices Revised to Strengthen Revenue and Reflect Global Market Trends

The Department of Geology and Mines (DGM) has revised the minimum floor prices for the export of major minerals, a move expected to enhance government royalty collection, improve transparency in mineral exports and ensure that Bhutan receives fair value for its natural resources amid changing international market conditions.

The revised prices, which took effect from July 4, will serve as the new Minimum Floor Price (MFP) for calculating Ad Valorem Export Royalty under the Revised Taxes and Levies Act of Bhutan 2016.

According to the DGM, the revised MFP applies to all mining lessees, permit holders and mineral exporters, and covers a wide range of export minerals including dolomite, limestone, marble, talc, gypsum, coal, quartzite, construction materials, phyllite, talcose phyllite and granite.

It states that the revision comes as the government seeks to maximize returns from the country’s expanding mining sector while ensuring royalty assessments are aligned with prevailing international market prices.

Officials from DGM said the MFP serves as the benchmark value for calculating export royalties regardless of the declared transaction price, preventing undervaluation of mineral exports and protecting national revenue.

Dolomite Prices Revised

Among Bhutan’s key export minerals, dolomite recorded notable revisions across different grades and export destinations.

For white dolomite lumps and chips exported to India, the revised minimum floor price has been set at Nu. 1,349 per metric tonne, while exports to Bangladesh will attract a floor price of Nu 2,547 per metric tonne.

White dolomite powder has been valued at Nu 1,636 per metric tonne for India-bound exports and Nu 2,351 per metric tonne for Bangladesh.

For lower-grade dolomite, the revised floor price for lumps and chips exported to India stands at Nu 439 per metric tonne, increasing to Nu 1,024 per metric tonne for Bangladesh.

Low-grade dolomite powder exported to any destination has been fixed at Nu 550 per metric tonne, while dolomite dust carries a MFP of Nu 199 per metric tonne.

Limestone, Marble and Talc Updated

The department has also revised export values for limestone and marble, another important mineral category. Limestone and marble lumps exported to India will now have a MFP of Nu 2,330 per metric tonne, while exports to Bangladesh will be assessed at Nu 2,116 per metric tonne.

For powdered limestone and marble, the revised rates are Nu 2,061 per metric tonne for India and Nu 2,745 per metric tonne for Bangladesh.

For talc, the MFP has been fixed at Nu 2,600 per metric tonne for lumps and Nu 3,373 per metric tonne for powder exported to any destination.

Gypsum, Coal and Quartzite Included

The revised schedule also updates prices for gypsum, with lumps and chips valued at Nu 2,601 per metric tonne for exports to India, Nu 2,959 for Nepal and Nu 3,115 for Bangladesh.

Gypsum powder exported to any country has been assigned a MFP of Nu 3,950 per metric tonne.

For coal, irrespective of grade or destination, the MFP has been revised to Nu 8,000 per metric tonne, making it one of the highest-valued minerals in the schedule.

The Department also specifies revised prices for various grades of quartzite, ranging from Nu 383 per metric tonne for dust smaller than 10 millimetres to Nu 917 per metric tonne for material measuring 40 millimetres and above.

Other quartzite categories include 30 mm (Nu 925), 20 mm (Nu 713), 10 mm (Nu 820) and non-sorted quartzite (Nu 500).

Construction Materials and Decorative Stones

Construction materials have likewise been assigned revised benchmark prices. Boulders larger than 40 millimetres are valued at Nu 540 per metric tonne, while 40 mm aggregates are priced at Nu 400, 30 mm at Nu 678, 20 mm at Nu 665, 10 mm at Nu. 400, dust below 10 mm at Nu 137, and non-sorted construction materials at Nu 204 per metric tonne.

The revised schedule further sets phyllite at Nu 570 per metric tonne, talcose phyllite at Nu 700, and granite blocks at Nu 4,465 per metric tonne.

Supporting a Growing Mining Sector

The revision comes at a time when Bhutan’s mining sector is recording strong growth. According to recent government data, mineral production increased from approximately seven million metric tonnes to 12 million metric tonnes over the past two years, while the sector’s Gross Value Added (GVA) expanded from Nu 4 billion to Nu 5.5 billion.

Mining has increasingly been identified as one of the country’s emerging economic growth sectors, supported by policy reforms, scientific mining practices and efforts to promote domestic value addition.

Officials say updating the MFP is an important component of strengthening mineral governance, ensuring transparent royalty collection and securing equitable returns from Bhutan’s natural resources.

Tashi Namgyal, Thimphu

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