At the regular session of the Cabinet of Mongolia on November 20, 2024, a presentation was made to the members of the Cabinet on the measures taken as part of the reforms implemented by the “Erdenes Mongol” Group to improve leadership, governance, and the overall operations, as well as to establish Mongolia’s Sovereign Wealth Fund.

Through substantial enhancements in corporate governance, operational management, and systemic overhauls, the “Erdenes Mongol” Group achieved noteworthy production results in 2023. The “Erdenes Mongol” Group mined 599.6 thousand tons of copper concentrate and 35.1 million tons of coal, generating a sales revenue of MNT 14.9 trillion and a net profit of MNT 4.5 trillion. These robust financial outcomes directly contributed MNT 4.5 trillion in taxes to the State Budget of Mongolia. As a result, USD 3.6 billion was generated for the Central Bank of Mongolia, making up 77 percent of the Foreign Exchange Reserves. The parent company of the Group paid off accumulated debts of MNT 200.0 billion at the company level and MNT 394.0 billion at the group level.

The improvement in the Group's operations and the increase in financial performance created the opportunity to distribute dividends to the shareholders of "Erdenes Tavan Tolgoi" JSC. The dividends were allocated from the company's net profits for 2022 and 2023.

The State Great Khural of Mongolia has adopted a Law on Mongolia’s Sovereign Wealth Fund to ensure the fundamental principles of the Constitution of Mongolia and achieve the goal of distributing the majority of the benefits of natural resources equitably and fairly to citizens by generating them in Mongolia’s Sovereign Wealth Fund. This has not only created a legal foundation for the Mongolian people to own their wealth but also has established a legal basis for the legal status and stable operation of the "Erdenes Mongol" Group.

In 2024, the "Erdenes Mongol" Group generated MNT 500 billion for the Sovereign Wealth Fund, providing the opportunity for 10,000 households to enter the housing program. The "Erdenes Mongol" Group plans to implement the next comprehensive reform aimed at increasing the Sovereign Wealth Fund's revenue.

In connection with the presentation, the Cabinet of Mongolia tasked pertinent officials with:

-Continuing the comprehensive reform to increase the revenue of Mongolia’s Sovereign Wealth Fund and the Savings Fund of the Sovereign Wealth Fund and distribute the benefits of natural resources equitably and fairly to the people of Mongolia through improving the governance, operations, and efficiency of state-owned mining companies,

-Accelerating the process of expropriating lands for the establishment of industrial and technological parks, including the “Steel Production Complex," "Construction Materials Manufacturing Complex," "Coal-Chemical Complex," "Fluorspar Processing Complex," and "Coke-Chemical Complex," for state special needs,

-Submitting the proposal to the Cabinet meeting to include the six industrial and technological parks to be implemented by "Erdenes Mongol" LLC in the list of sectors, activities, product types, and locations for industrial and technological parks,

-Implementing measures to increase the allocation of freight wagons owned by public and state-owned entities under the "Erdenes Mongol" Group to boost exports and increase foreign exchange reserves.