As part of the government’s initiative to streamline the mining and mineral resources sector, the government reached agreements with Achit Ikht LLC, Energy Resources LLC, Khangad Exploration LLC, and Usukh Zoos LLC on determining the state’s ownership share in strategic and derivative deposits, as well as how that ownership will be exercised and implemented. The agreements were signed on February 10, 2026.

The parties reached the agreement in expression of their commitment to implementing Article 6.2 of the Constitution, which stipulates that “the majority of the benefits from subsoil resources shall accrue to the people, with the legal basis to be determined by law.” Amendments to the Constitution adopted in 2019 introduced the principle that the majority of the benefits from subsoil resources should accrue to the people and be distributed equitably and fairly to present and future citizens through the National Wealth Fund, followed by the adoption of the Law on the National Wealth Fund.

To give effect to and implement Article 6.2 of the Constitution—ensuring that the majority of the benefits from natural resources accrue to the people and that citizens are rightful owners of their wealth—a working group mandated to negotiate with legal entities operating strategic and derivative deposits has been established by order of Prime Minister Zandanshatar Gombojav.

Since August 2025, the working group has been holding negotiations with entities exploiting the Erdenet derivative deposit and with license holders operating strategic coal deposits.

As a result, it was agreed that 60 percent of the benefits generated from derivative and strategic deposits—including those operated by MCS, Energy Resources LLC and Khangad Exploration LLC in the Tavan Tolgoi coal deposits, Usukh Zoos LLC at the Nariin Sukhait deposit, and Achit Ikht LLC at the Erdenet derivative deposit—will accrue to the Mongolian people and be accumulated in the National Wealth Fund.

In years when the benefits amount to less than 60 percent, the companies holding licenses for strategic and derivative deposits will pay an adjustment payment, as mutually agreed.

Going forward, the government will draft and submit to the State Great Khural (parliament) a resolution on the proportion of state ownership in strategically important mineral deposits, how such ownership should be exercised and implemented, and how the benefits derived from such ownership should be calculated, for parliamentary consideration and approval.

Published Date:2026-02-11