Source: http://www.2point6billion.com/news                          Date: 06 April, 2011

The Government of Mongolia has announced the following format to distribute shares in the state-owned Erdenes Tavan Tolgoi LLC to every citizen:

* 1.5 billion shares will be divided among 2,796,341 citizens, or each Mongolian will receive 536 shares

* Strategic deposits will be put into production in stages and profits from natural resources will be distributed in fair, equal and inclusive manner to every citizen

* The exact price of the share will be determined at the time of the global IPO of Erdenes TT

* To protect citizens from risk, citizens will not be permitted to sell shares until the price of shares stabilizes in a realistic manner after extraction and coal exports stabilize; paved roads, railroads, and power supply are resolved; and construction of CHPP started

* The GoM will regularly inform about the process of putting TT into production in order to make it transparent, open and understandable

* However, citizens being shareholders must be responsible themselves and exercise supervision, this possibility will be opened to each citizen/shareholder, mistakes of past privatization will not be repeated

* The government will pay attention to educate citizens/shareholders about how the capital market works, and they should do their best to improve their understanding

* The TT project will be developed as a model for future projects

* Distribution of TT shares will be organized by the State Property Committee, State Registration Agency, Central Depositary of Securities Payments and Clearances and Labor, Welfare and Service Agency. Record of share ownership is to be made at the Human Development Fund record book for each citizen

* The next step (of many to be done) is the selection of investor and contractor, preparation of technical and economic justification (related to feasibility study) and IPO on MSE and international stock exchange

These steps will effectively make every Mongolian citizen a wealthy individual and, if successful, may well be extended to the sharing in a similar manner of other state owned assets.