Working Group Established to Accelerate Implementation of National Sovereign Wealth Fund Law

The Law on the National Sovereign Wealth Fund, adopted on April 19, 2024, aims to ensure fair distribution of Mongolia’s natural resource wealth. On August 2, Prime Minister G.Zandanshatar convened a meeting with key government officials to review the progress of its implementation. Discussions focused on revenue collection and oversight of the fund, defining state ownership in strategically important mineral deposits, and ensuring equitable distribution of natural resource benefits to citizens through the fund.

At the outset of the meeting, the Prime Minister stressed that the government’s policy on the National Sovereign Wealth Fund must be implemented sustainably and in line with constitutional principles. He pointed to Article 6.2 of the Constitution of Mongolia, which states:

“In the exploitation of mineral deposits of strategic importance, the law shall establish the legal basis for the majority of the benefits to be shared by the people, in accordance with the principle that natural resources are owned by the people.”

The Prime Minister noted that this constitutional provision has not been adequately enforced. To address this, a Working Group led by Chief of Cabinet Secretariat S.Byambatsogt has been established to intensify the implementation of the law.

During the meeting, it was decided to expand the investigation into possible legal violations involving the transfer of strategically significant deposits—originally explored with state budget funding—to private entities. A joint sub-working group composed of representatives from the police, intelligence agencies, and the Independent Authority Against Corruption has been formed to lead the inquiry.

The Prime Minister also emphasized the importance of securing the public's rightful share of strategic mineral assets and directed the Working Group to ensure initial public offerings are launched on the stock exchange to allow citizens to benefit.

Additionally, a decision was made to evaluate the long-term impact of the Accumulation Fund and the Future Heritage Fund, both integral parts of the National Sovereign Wealth Fund. A modeling system will be developed to balance long-term economic stability with pressing public needs, particularly in housing policy.

Source: Government of Mongolia