Monogovernment: Mongolia Aims to Allocate at Least 60% of Strategic Mineral Resource Revenues to Citizens

Mongolnews Agency, Ulaanbaatar, May 12 — According to a government press office announcement, Prime Minister N. Uchirbold met with holders of strategically important mineral deposits on May 11 to discuss issues including the state’s equity share in strategic deposits, revenue distribution mechanisms, and the national wealth fund framework.

During the meeting, the Mongolian government stated it would draft legislation clearly defining the state’s equity percentage in strategically important mineral deposits and their derivative deposits, channeling related revenues into the National Wealth Fund so that more benefits from underground resource development reach citizens. The draft law is planned to be submitted to the State Great Khural via an expedited special procedure. Attendees—including energy and resource companies such as Energy Resources Company, Achit Ekhed, and MAK Company—expressed support for the government’s initiative to advance this legislative proposal.

Legal Framework:

Clearly define the specific scope of revenues from strategically important mineral deposits,

mandate that no less than 60% of revenues benefit citizens

If the revenue sharing ratio falls below 60%, deposit holders must pay a regulatory fee

Additionally, the draft proposes categorizing state equity percentages by mineral type and replacing fixed state ownership shares with dedicated mineral resource usage fees.

Previously, strategic deposit holders had signed memoranda of understanding with the prior government agreeing to concentrate 60% of deposit revenues into the National Wealth Fund. However, under current legislation, it remains unclear what exactly should be included within the "60% revenue" calculation.

The upcoming draft law will clarify which fees, taxes, and related payments count toward the 60% revenue threshold, determine the rate for dedicated mineral resource usage fees, and establish the tax rate for special mineral resource usage fees. If portions previously tied to state equity are instead replaced by special usage fees directly transferred to the National Wealth Fund, citizens’ individual accumulation accounts may also see increased balances. Negotiating individually with each deposit holder could take considerable time—possibly years—making a comprehensive legal solution far more practical and efficient.

Under the 2024 National Wealth Fund Law, dividend income corresponding to state ownership stakes in mining enterprises (both fully state-owned and partially state-participated) has already been incorporated into citizens’ accumulation funds. As shown on the e-Mongolia platform, the “Genghis Khan” National Wealth Fund per capita returns were 178,000 tugriks in 2024, 306,000 tugriks in 2025, and are projected to reach 500,000 tugriks in 2026.

Once approved, this legislative draft will enable citizens to promptly benefit from revenues generated by strategic mineral deposits while simultaneously creating a clearer, more stable, and predictable legal environment for investors. By year-end, citizens' personal accumulation fund accounts on the e-Mongolia platform are expected to grow, leading to a mutually beneficial (Win-Win) outcome.

Prime Minister N. Uchirbold stated that since taking office, the government has consistently prioritized and actively advanced the "Liberation" initiative to ensure tangible results. Mongolia views the private sector as a key driver of economic growth and investors as long-term strategic partners. The primary goal of this meeting was not to increase operational burdens on businesses but to resolve long-standing uncertainties and establish a stable, clear, and predictable legal environment.

According to Decision No. 27 of the State Great Khural from 2007, Mongolia has identified 16 strategically important mineral deposits and compiled a list of 39 additional deposits requiring further evaluation to determine if they qualify as strategic. Of the 16 designated strategic deposits, eight have already had their state equity shares confirmed; negotiations for the remaining eight are underway.

The 16 strategically important mineral deposits in Mongolia include: coal deposits—Tavan Tolgoi, Nalin Sukhait, Baga Nuur, Sibergaobai; copper, gold, and molybdenum deposits—Erdenet, Oyu Tolgoi, Chagannuur; uranium deposits—Mardai, East, Gurbantograi; gold deposits—Boro, Gachuurt; iron deposits—Temurtei; zinc deposits—Temurtei Obo; phosphate deposits—Burenkhan; silver deposits—Asgat.

Original article: toutiao.com/article/1864998715452416/

Disclaimer: This article reflects the personal views of the author