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Mongolia Strikes Preliminary Deal To Direct 60% Of Key Mines’ Returns To Citizens

Next steps require cabinet action followed by parliamentary review.

Overview

  • The government and operators of the Tavan Tolgoi coal clusters, Uhaa Khudag, Nariinsukhait/Baruunnaran, and Erdenet’s residual copper deposit signed a memorandum targeting a 60% share for the National Wealth Fund.
  • Signatories agreed that if the citizens’ share falls below 60%, an adjustment payment in the form of a wealth or mineral tax will apply, with final formulas still to be defined.
  • Options under consideration include fixing a state equity stake or applying a special mineral royalty (AMNAT), with cabinet decisions to precede submission to Parliament.
  • A public consultation on growing and using the National Wealth Fund is scheduled in Ulaanbaatar by April 15 to gather citizen input.
  • Concurrent actions include annulling a May 2025 border‑zone land allocation to the state‑owned Boomt Development Corporation and authorizing Ulaanbaatar to issue up to MNT 200 billion in 2026 bonds for Thermal Power Plant V.