This study was commissioned by the Mongolian Coal Association with the support of the Ministry of Mining and Heavy Industry and coal exporting companies. Along with the difficulties of Covid-19, coal exporters have had to pay excessively high royalty payments as coal export royalty is imposed based on benchmark price by Government Resolution No. 174 of 2021. In this regard, this study aims to compare international and domestic practices of royalty regulation in the mining sector, investigate the emerging issues relating to the regulation of royalty, and propose recommendations.

The international practices of royalty regulation are discussed in the examples of Australia, Indonesia, Russia, and China. Whereas the domestic practices of royalty imposition are analyzed in the framework of numerical data, policy, and research documents of the mining industry, the issue related to estimating royalty based on the benchmark price is examined in detail.