Mongolian Government decides to give each citizen mining shares

ULAN BATOR, April 1 (Moninfo) -- Mongolian Prime Minister Batbold Sukhbaatar said “during special cabinet meeting, government made important decision about distribution of mining shares to all citizens which is important part of distributing mineral wealth to all citizens in fair and equal way”.

According to report of press service of Mongolian government distributed Thursday, Government decided to give each Mongolian citizen 536 shares of state owned “Erdenes Tavan Tolgoi” mining company which is in charge of the giant coking coal deposit “ Tavan Tolgoi” in southern Gobi desert of Mongolia.

According to the Mongolian statistical data, Mongolian population stands at 2 million 796 thousand 341 people. All people born before March 31, 2011 will be entitled to free ownership of the shares. 10% of the mining company equals 1.5 billion shares.Altankhuyag Norov, senior deputy prime minister said “ price of the shares will be clear when shares of the mine will be sold in international stock markets. Actual share price will be set after coal production and export normalizes, road and railroad,power, water supply solution is made clear and work on coal processing plant start. Until then, citizens can not sell their shares.”

Batbold said “ development of Tavan Tolgoi mine will be open and transparent. Government will inform the public about progress of the development on monthly and quarterly basis.Government will work to improve citizens’ knowledge and information about stock market and shares. Which is important aspect of benefitting from mining wealth.

Mongolian Government plans to sell 30% of the shares in an overseas exchange, 10% on the domestic exchange for Mongolian owned businesses at nominal price and 10% distributed to the public in the form free share handout.The remaining 50% will be held by Government.

Currently 6 large international companies are shortlisted for second round of negotiation with Mongolia for investment in the coking coal mine.Enditem.

Source:MonInfo News Wire service