Erdenes Tavantolgoi to Distribute 1,072 Shares in Mongolia
Mongolian Cabinet Proposes New Share Allocations for Erdenes Tavantolgoi JSC
The Mongolian Cabinet has made a decision to present a draft resolution to the Parliament regarding the shares of Erdenes Tavantolgoi. This resolution suggests adjusting the shareholding structure of Erdenes Tavantolgoi JSC to allocate 34% of the total shares to Mongolian citizens. This allocation would extend not only to current citizens but to future generations as well, including children born after April 11, 2012, and individuals who acquire Mongolian citizenship in the future.
Currently, Erdenes Mongolia LLC holds 81.5% of the shares in Erdenes Tavantolgoi JSC, while approximately 2.5 million Mongolian citizens born before April 11, 2012, collectively own 18.44%. National enterprises retain ownership of the remaining 0.06% of shares.
The goal of the draft resolution is to ensure the fair distribution of natural resource benefits among all Mongolian citizens. It proposes granting 1,072 shares of Erdenes Tavantolgoi JSC to each Mongolian citizen born after April 11, 2012, who does not currently hold shares in the company. Additionally, it suggests granting ownership of Erdenes Tavantolgoi JSC shares to every Mongolian citizen born on or after January 1, 2024, directly.
According to Chief Cabinet Secretary D. Amarbayasgalan, this proposed change would increase the ownership of Erdenes Tavantolgoi JSC by Mongolian citizens to 34%, with 3,541,803 citizens holding 4.08 billion shares. State ownership would decrease to 65.9%.
The Cabinet’s decision is a significant step towards more equitable distribution of natural resource wealth and ensuring that all Mongolian citizens can benefit from the country’s natural resources. This move would not only benefit current citizens but also future generations, providing a more inclusive approach to resource ownership.
