Mongolia Fund to Manage $30 Billion Mining Jackpot
Sept. 11 (Bloomberg) — The Mongolian government will set up a sovereign wealth fund using mining royalties and tax revenue, and distribute part of the income to citizens to alleviate poverty, said Finance Minister Sangajav Bayartsogt.
The fund, to be run by professional managers from 2013, will disburse part of its annual income to every Mongolian…
Currently, per capita income is estimated at $1680/year for the 2.7 million Mongolians. A single large mining project is expected to generate $30 billion in tax revenue over 50 years. Apparently this estimate includes royalties. Distribution of “mining wealth” to the people had been an issue in May’s elections.
Mongolia’s government on Aug. 25 passed laws allowing companies to carry forward their losses for eight years, build private roads and let Oyu Tolgoi developers use water they find on their land. The parliament will also repeal from Jan. 1, 2011, a 68 percent windfall profit tax on copper and gold.