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Preferred shares of Erdenes MGL to be issued to every citizen of Mongolia

According to official website of Government of Mongolia on June 25, 2012(http://open-government.mn/read-1478-.html) Cabinet Meeting has approved issuance of preferred shares of “Erdenes MGL” company to every citizen of Mongolia

  • While Government of Mongolia has issued to every citizen of Mongolia 1072 shares of “Erdenes Tavantolgoi” company, today’s Cabinet meeting has made historic decision to add and issue to every citizen preferred shares of “Erdenes MGL” company.
  • Currently “Erdenes MGL” company has two daughter companies – “Erdenes MGL” and “Oyutolgoi” and three mining licenses of Shivee Ovoo thermal coal strategic deposit. Thus, according to this decision, opportunity is guaranteed for every citizen to receive for a lifetime dividends from all 15 strategic deposits
  • In another words, the distinct feature of preferred share is that citizens of Mongolia will have an opportunity to get dividends even before Government of Mongolia and shareholders.
  • Prime Minister of Mongolia has said that this action is concrete realization of Government policy to deliver to each citizen equal distribution of natural wealth.
  • Erdenes MGL company has 100 million common shares and 3 million preferred shares. Every registered citizen without citizenship jurisdiction issue is to have right to own preferred share free of charge.
  • However, it is prohibited by law to sell, trade, give as a gift, use a collateral or give as inheritance preferred shares. Right to own preferred shares finishes in case a specific person dies or ceases to be a citizen of Mongolia