MFP Revised for Ad Valorem Export Royalty on Minerals: What Changes From April 8, 2026

Bhutan’s minimum floor prices for mineral exports were revised by Misryoum’s report, effective April 8, 2026, updating ad valorem export royalty benchmarks and pricing for multiple minerals and markets.

Bhutan has revised its minimum floor prices (MFP) for mineral exports, a key benchmark used to calculate ad valorem export royalty.

The new rates, declared by the Department of Geology and Mines (DGM) under the Ministry of Energy and Natural Resources, took effect on April 8, 2026.. The adjustment comes under the Revised Taxes and Levies Act of Bhutan 2016, which allows periodic review of export royalty benchmarks—an approach aimed at keeping the mining sector aligned with shifting regional market conditions.

For exporters, the practical change is straightforward in theory but significant in accounting: under an ad valorem system, royalty is charged as a percentage of the mineral’s price value rather than as a fixed fee per metric tonne.. The MFP effectively sets a baseline for that value, reducing the risk that exports could be undervalued during declaration.

Misryoum reports that the revised MFP list spans everything from widely traded construction inputs to industrial minerals.. Dolomite, one of Bhutan’s most exported mineral categories, now has differentiated rates depending on grade and destination.. High-grade white dolomite lumps and chips exported to India are set at Nu 1,333 per MT, while exports to Bangladesh are priced higher at Nu 2,609 per MT.. Powdered white dolomite is pegged at Nu 1,635 per MT for India and Nu 2,220 per MT for Bangladesh, while lower-grade dolomite products see revised levels as well.. For example, lower-grade dolomite lumps and chips exported to India are set at Nu 429 per MT, compared with Nu 1,030 per MT for Bangladesh.. Powdered low-grade dolomite is set at Nu 550 per MT across destinations, and dolo-dust is priced at Nu 195 per MT.

Limestone and marble—another major export segment—also face updated benchmarks.. Limestone lumps exported to India are priced at Nu 2,070 per MT, with Bangladesh receiving Nu 2,050 per MT.. Powdered limestone sits slightly higher, with rates of Nu 2,068 per MT for India and Nu 3,000 per MT for Bangladesh.

The revision also touches industrial minerals and energy-linked commodities in ways that may matter to both contract pricing and supply planning.. Gypsum lumps and chips are set at Nu 2,640 per MT for India, Nu 2,950 per MT for Nepal, and Nu 3,115 per MT for Bangladesh.. Gypsum powder carries a higher uniform rate of Nu 3,950 per MT across markets.. Coal exports are benchmarked at a standardized Nu 8,000 per MT regardless of grade, reflecting a move toward consistent valuation for a high-value mineral used in energy and industrial processes.

Beyond minerals traded in bulk, Bhutan’s policy appears to address growing cross-border demand for construction inputs.. Misryoum notes that quartzite benchmarks range from Nu 900 per MT for sizes above 40mm down to Nu 383 per MT for dust, while non-sorted quartzite is set at Nu 500 per MT.. Construction materials such as boulders and crushed stones were assigned new rates too: boulders larger than 40mm are priced at Nu 600 per MT, smaller aggregates like 10mm materials at Nu 410 per MT, dust at Nu 117 per MT, and non-sorted materials at Nu 206 per MT.. Other entries include phyllite and talcose phyllite at Nu 610 and Nu 700 per MT respectively, while granite blocks are assigned a significantly higher benchmark of Nu 4,465 per MT, consistent with premium positioning in construction and export markets.

From a revenue perspective, the logic is that MFP updates help protect the treasury from undervaluation—where the declared export value could lag behind actual market terms.. In the ad valorem model, if the royalty is calculated as a percentage, under-declaring the value risks shrinking royalty receipts even when physical volumes remain unchanged.. By setting a minimum threshold, Misryoum reports that the government aims to ensure exporters declare realistic values and that the country benefits fairly from its natural resources.

Operationally, officials also acknowledged that the revised benchmarks may raise costs for some exporters.. In that scenario, businesses may need to adjust pricing strategies and renegotiate contracts to fit the new baseline.. At the same time, the policy could indirectly encourage value addition at home: processed mineral products typically command different price points than raw output, so firms may find incentives in shifting from simple exports toward higher-value preparation.

There’s also a wider trade-dynamics angle.. Differentiated rates for countries such as India, Bangladesh, and Nepal reflect variations in demand, logistics costs, and bilateral realities that influence what buyers are willing to pay.. While the government expects the changes to be unlikely to significantly disrupt trade flows—given Bhutan’s strategic position in supplying neighboring markets—exporters may still face tighter margins, especially on contracts signed before the new rates.

Misryoum’s takeaway is that this is not just a pricing spreadsheet update; it’s a mechanism that can reshape behavior across the mining chain.. If the MFP aligns more closely with current market realities, royalty collections can become more stable and harder to erode through under-invoicing.. Over time, that stability may also strengthen policy credibility around responsible mining and help the sector plan with clearer expectations for returns—whether those returns come directly through export royalties or through investments in processing and product upgrading.