Minister of Finance Z.Mendsaikhan presented the decisions made at the regular Cabinet meeting.
The Government has begun gathering public feedback on how to use the MNT 3 trillion in dividends expected from the Oyu Tolgoi project. Citizens can submit their suggestions by logging into the E-Mongolia system.
The Minister clarified that, contrary to public expectations, the dividends will not be distributed to citizens in cash. Instead, the funds will be deposited into citizens’ savings accounts and will not be immediately available for spending.
Under the Government’s current proposal, MNT 1 trillion of the dividends would be allocated to the Future Heritage Fund, while the remaining MNT 2 trillion would be invested in strengthening the foundations of Mongolia’s economic development. Citing the need to diversify the economy, Z.Mendsaikhan identified the energy sector as one of the country’s major challenges and said the Government had proposed investing the initial Oyu Tolgoi dividends in this sector.
He noted that the Government of Mongolia and the Rio Tinto Group are the shareholders in the Oyu Tolgoi project. The Government maintains that Mongolia is entitled to receive dividends from its natural resources and has included MNT 3 trillion in expected dividend revenue in the state budget. However, the arrangement must be formalized in law. The decision to distribute dividends has been made, and the Government has reiterated its position that Mongolia, as the owner of the natural resources, is entitled to receive them.
Of the MNT 43 trillion in projected revenue under the 2027 draft state budget, MNT 3 trillion is expected to come from Oyu Tolgoi dividends. Alongside the 2027 budget bill, the Government submitted a draft law to be applied on a one-time basis. The bill proposes allocating MNT 2 trillion of the dividends for investment and directing MNT 1 trillion to the savings fund.
However, if public feedback supports depositing the entire amount into the savings fund, the Government will withdraw the proposed bill. The Government also stated that it would approve a budget totaling MNT 40.5 trillion.
Minister of Finance Z.Mendsaikhan presented the decisions made at the regular Cabinet meeting.
The Government has begun gathering public feedback on how to use the MNT 3 trillion in dividends expected from the Oyu Tolgoi project. Citizens can submit their suggestions by logging into the E-Mongolia system.
The Minister clarified that, contrary to public expectations, the dividends will not be distributed to citizens in cash. Instead, the funds will be deposited into citizens’ savings accounts and will not be immediately available for spending.
Under the Government’s current proposal, MNT 1 trillion of the dividends would be allocated to the Future Heritage Fund, while the remaining MNT 2 trillion would be invested in strengthening the foundations of Mongolia’s economic development. Citing the need to diversify the economy, Z.Mendsaikhan identified the energy sector as one of the country’s major challenges and said the Government had proposed investing the initial Oyu Tolgoi dividends in this sector.
He noted that the Government of Mongolia and the Rio Tinto Group are the shareholders in the Oyu Tolgoi project. The Government maintains that Mongolia is entitled to receive dividends from its natural resources and has included MNT 3 trillion in expected dividend revenue in the state budget. However, the arrangement must be formalized in law. The decision to distribute dividends has been made, and the Government has reiterated its position that Mongolia, as the owner of the natural resources, is entitled to receive them.
Of the MNT 43 trillion in projected revenue under the 2027 draft state budget, MNT 3 trillion is expected to come from Oyu Tolgoi dividends. Alongside the 2027 budget bill, the Government submitted a draft law to be applied on a one-time basis. The bill proposes allocating MNT 2 trillion of the dividends for investment and directing MNT 1 trillion to the savings fund.
However, if public feedback supports depositing the entire amount into the savings fund, the Government will withdraw the proposed bill. The Government also stated that it would approve a budget totaling MNT 40.5 trillion.