A Government Resolution on Measures to Implement the Law on the National Sovereign Wealth Fund Has Been Approved

Selection of Management for Erdenes Tavantolgoi Company Through an International Open Process

The Cabinet discussed strategies to enhance the operations of Erdenes Tavantolgoi Company and decided to place the company under international management. This move aims to increase profitability, improve productivity, and reduce political interference in appointments and procurement processes.

U. Nyam-Osor, Chief of the Cabinet Secretariat, along with the Administration and Board of Directors of Erdenes Mongol LLC and Erdenes Tavantolgoi JSC, has been tasked with implementing measures to enhance the company's governance and overall efficiency, leveraging best practices from international experience.

They are instructed to organize the management selection through a professional team chosen via an international open selection process, with a report on the results to follow. Additionally, the Prime Minister has underscored the importance of acquiring consulting services from international organizations to assist in this selection process.

Approval of Government Resolution on Measures to Implement the Law on the National Sovereign Wealth Fund

A draft resolution outlining measures to implement the Law on the National Sovereign Wealth Fund was discussed and approved during the cabinet meeting.

According to the resolution, Minister of Industry and Mineral Resources Ts. Tuvaan has been tasked with developing a proposal to revise the list of strategically important mineral deposits and demarcate some deposits.

Furthermore, the Chief of the Cabinet Secretariat, N. Uchral, has been instructed to negotiate the state’s share in entities utilizing strategic mineral deposits and their derivatives, with results to be presented at a Cabinet meeting

In line with amendments to the Constitution of Mongolia, the Law on the National Sovereign Wealth Fund, and the Law on Minerals, there is an urgent need to implement legal regulations ensuring that strategic deposits are effectively utilized, benefiting the population equitably and fairly.

Prime Minister Instructs Authorities to Formulate a Plan for Improving Mongolia's Credit Rating

International credit rating agency Fitch Ratings has upgraded the Government of Mongolia's credit rating to B+ Stable after a decade. This upgrade has restored investor confidence and is positively impacting the private sector and banking institutions; for instance, the credit ratings of three banks have improved.

At the Cabinet meeting, Minister of Finance B. Javkhlan was tasked with preparing a medium-term plan aimed at further enhancing Mongolia's credit rating and establishing a working group to oversee this initiative.

In recent years, while more than 70 countries experienced a decline in credit ratings due to challenges from the global COVID-19 pandemic and geopolitical conflicts, over 50 countries saw improvements.

Amid these difficulties, the Government of Mongolia has managed to enhance its credit rating through the implementation of sound financial policies, budgetary discipline, and effective debt management.

Source: Government of Mongolia