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Mongolia has taken a significant step in reforming its mining sector by approving a new law that will allocate 60% of profits from strategically important mineral deposits directly to its citizens. This landmark decision aims to ensure that the nation's natural wealth benefits every individual.

Resource Revenue Distribution

Under the newly approved resolution, the Mongolian government will channel 60% of the revenue generated from key mining operations into a national fund. This fund will then distribute the money to individual citizens' personal accounts. Previously, this figure stood at 34%, highlighting a substantial increase in the share allocated to the public.

Comparison with Kazakhstan

This development has drawn comparisons with Kazakhstan, which began distributing profits from mineral resources, particularly oil, to its citizens starting in 2024. However, Kazakhstan's program is currently limited to citizens under 18 years old and is calculated based on half of the investment income from the National Fund, a smaller scope compared to Mongolia's comprehensive approach.

Focus on Gold and Diversification

Beyond coal and copper, Mongolia is placing a strong emphasis on gold production. The 'Gold-3' program is designed to explore new deposits and support private entrepreneurs in the sector. These initiatives are intended to bolster the country's gold and foreign exchange reserves and diversify its economy away from a sole reliance on raw material exports.

Addressing Environmental and Governance Concerns

The accelerated development of new mining sites and the implementation of these new programs also raise environmental and governance concerns. Reports of illegal gold mining in certain regions have prompted authorities to take action. The President has intervened by vetoing some decisions, prioritizing environmental protection alongside resource development.

A Vision for the Future

Mongolia's forward-thinking approach positions natural resources as a collective asset for the entire nation, rather than solely benefiting corporations and officials. The ultimate goal is to transition from a raw material-dependent economy to an industrial model, strengthening national independence and improving the living standards of its people.

This information was reported by Infohub.kz.