At its plenary meeting on November 13, 2009 Parliament approved a law aimed at fulfilling the Mongolian People Revolutionary Party and Democratic Party election manifesto promise to allocate mineral deposit exploitation profits to all the country’s citizens. During the Parliamentary Elections, the MPRP promised to distribute 1.5million tog to each citizen while DP promised 1million tog. This year, the Government drew up a Bill for the “Favor of Motherland” and these have been submitted to Parliament. In the process of discussing these Bills at Parliament, it was considered necessary to combine the two Bills and the two parties therefore each set up a relevant working group for negotiations. At last, a new Bill, namely, “Human Development Fund”, as a combination of the two Bills was approved by parliament.
This new law stipulates distributing 1,5million togs to every citizen as a state and favor from mining profits and, from the year after distribution, the fund’s money is to be deposited into domestic and international financial market savings faculties so as to gain profits and annually distribute dividends from these earnings. Law, not just about giving money to citizens, but about creating a legal environment to distribute shares from mineral resource profits. The Human Development Fund will be financed by State owned share dividends from strategically important mineral resources; income from share sales; advance payments and a portion of companies’ royalties paid into the state budget. The Fund’s asset income will increase considerably between 2016 and 2017. The Law stipulates that a company specially licensed for nationwide operations will co-own the state’s shares in entities legally exploiting strategically important deposits and every Mongolian is to be privileged shareholders in that company.
Mining wealth to be shared by all Mongolians
