Mongolian mining makes citizen millionaires

Featured - June 18th, 2012
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Erdenes Tavan Tolgoi, the world’s third largest coking coal deposit, will make many Mongolians millionaires by sharing its growing mineral wealth with the public, the Financial Times reports.

Tavan Tolgoi will share 20% of its shares among the 3 million population, with every Mongolian to own 1,072 shares, equivalent to 1 million tugrik, about US$800, says Chimed Saikhanbileg. However the mining is clouded with election controversies that have stalled public listing. The government offered to buy shares for one million tugrik when citizens opt out of waiting for the public listing.

This comes a week before parliamentary elections with the two center-left parties – The Democratic party and Mongolian’s People party – using the same platforms for mining revenues to boost the country’s many mineral resources. Mongolia is rich in coal, uranium and iron ore..

Tavan Tolgoi is set for a three-city listing in Hong Kong, London and Ulan Bator, but uncertain global markets have delayed the listing. Head of the Civil Will Green party Oyun Sanjaasuren said, “Tavan Tolgoi is quite a big, complicated equation, with a lot of unknowns still, like how do we deal with geopolitics, neighbours and strategic investors”.