In a move aimed at strengthening domestic revenue collection and aligning Bhutan’s mineral sector with evolving regional market conditions, the government has revised the minimum floor prices (MFP) for mineral exports, in line with the provisions under the Revised Taxes and Levies Act of Bhutan 2016, which allows periodic review of export royalty benchmarks.
The revised rates, declared by the Department of Geology and Mines (DGM) under the Ministry of Energy and Natural Resources (MoENR), came into effect from April 8, 2026. The MFP serves as the baseline value for calculating ad valorem export royalty, ensuring that mineral exports are not undervalued and that the country receives a fair share of revenue from its natural resources.
In the Ad Valorem system, instead of charging a fixed fee per tonne, the government charges a percentage of the product’s price as royalty, which means according to the value of the product.
If the royalty rate is 10% and the value of the mineral (based on MFP or actual price) is Nu 2,000 per metric tonne (MT), the royalty charged equals to 10% of 2,000, which is Nu 200 per MT.
The revised rates cover a wide range of minerals, including dolomite, limestone, gypsum, coal, quartzite, and construction materials—many of which are among Bhutan’s key export commodities.
Dolomite, one of Bhutan’s most exported minerals, has seen differentiated pricing based on grade and destination. High-grade white dolomite lumps and chips exported to India are now priced at Nu 1,333 per MT, while exports to Bangladesh command a higher rate of Nu 2,609 per MT. Powdered white dolomite is set at Nu 1,635 per MT for India and Nu 2,220 per MT for Bangladesh.
Lower-grade dolomite products have also been revised, with lumps and chips priced at Nu 429 per MT for India and Nu 1,030 per MT for Bangladesh. Powdered low-grade dolomite is set at a uniform rate of Nu 550 per MT for all destinations, while dolo-dust is priced at Nu 195 per MT.
Limestone and marble, another major export segment, have also undergone adjustments. Limestone lumps exported to India are priced at Nu 2,070 per MT and Nu 2,050 per MT for Bangladesh. Powdered limestone exports are slightly higher, with rates of Nu 2,068 per MT for India and Nu 3,000 per MT for Bangladesh.
The revised notification sets notable benchmarks for industrial minerals such as gypsum and coal. Gypsum lumps and chips are priced at Nu 2,640 per MT for India, Nu 2,950 per MT for Nepal, and Nu 3,115 per MT for Bangladesh, reflecting varying regional demand and transportation dynamics. Gypsum powder commands a higher uniform rate of Nu 3,950 per MT across all markets.
Coal exports, regardless of grade, are now pegged at Nu 8,000 per MT, indicating the government’s effort to standardize pricing for high-value energy minerals.
Talc products have also been revised, with lumps priced at Nu 2,600 per MT and powder at Nu 3,373 per MT for all export destinations.
The revised MFP also includes construction materials and aggregates, which are increasingly traded across borders for infrastructure development in neighboring countries.
Quartzite pricing ranges from Nu 900 per MT for sizes above 40mm to Nu 383 per MT for dust. Non-sorted quartzite is set at Nu 500 per MT.
Similarly, construction materials such as boulders and crushed stones have been assigned new rates. Boulders larger than 40mm are priced at Nu 600 per MT, while smaller aggregates such as 10mm materials are set at Nu 410 per MT. Dust materials are priced at Nu 117 per MT, and non-sorted materials at Nu 206 per MT.
Other minerals such as phyllite and talcose phyllite are priced at Nu 610 and Nu 700 per MT respectively, while granite blocks have been assigned a significantly higher rate of Nu 4,465 per MT, reflecting their value in premium construction and export markets.
Officials say the revision is part of a broader effort to ensure that Bhutan’s mineral exports are valued appropriately in international markets. By setting a minimum price threshold, the government aims to prevent under-invoicing and revenue leakage.
“The revision of MFP is necessary to reflect current market realities and safeguard national interest,” an official from the DGM said. “It ensures that exporters declare realistic values and that the country benefits fairly from its natural resources.”
The differentiated pricing for countries such as India, Bangladesh, and Nepal also reflects variations in market demand, logistics costs, and bilateral trade dynamics.
According to officials, while the revised rates may increase the cost base for exporters, they are unlikely to significantly disrupt trade flows, given Bhutan’s strategic advantage in supplying minerals to neighboring markets.
“However, exporters may need to adjust pricing strategies and renegotiate contracts to accommodate the new benchmarks. The changes could also encourage value addition within the country, particularly for processed mineral products that command higher prices.”
At the same time, the revised rates are expected to boost government revenue from the mining sector, which remains an important contributor to the national economy.
Officials emphasize that pricing reforms such as the MFP revision are part of a larger framework aimed at promoting responsible mining practices while ensuring economic returns.
Tashi Namgyal, Thimphu
