Uranium: Mongolia’s making amendments to the Nuclear Energy Law
- 2024-11-13
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Mongolia stands in the 10th place in the world in uranium resources. The Government of Mongolia is willing to sign an investment agreement with the Orano group having resolved equity ownership and mineral royalty rates.
The current Minerals Law of Mongolia has some applications to uranium projects. However, the nuclear energy law is the most relevant.
Mongolia wishes to swap the 34% government equity for a 5% special tax. This tax rate will be added to the base royalty rate of 5%. Further 4% tax rate is under discussion in response to the current prices of uranium products.
Royalties are expected to be aligned with the characteristics of the uranium deposits.
In preparation for the Investment Agreement (of which negotiations began in mid-2023), the Nuclear Energy Law of Mongolia is expected to be amended, and the Parliamentary Standing Committees have begun deliberations on proposed legal amendments.
In a nutshell, Mongolia expects a 14% mineral royalty which would be further aligned with the uranium products’ price levels.
The Government of Mongolia, also, expresses a significant interest in environmental risks. Important matters such as “the project closure” and the government’s regulatory powers have been some of the key topics of the parliament’s deliberations.