How should MNT3 trillion in Oyu Tolgoi dividends be spent? Government seeks public input

The Government of Mongolia has begun seeking public input, from October 14, 2026, on how to spend the MNT3 trillion in dividend revenue it estimates could be received from Oyu Tolgoi LLC in 2027. The preliminary plan includes investments in energy, education, agriculture and port infrastructure, as well as a proposal to allocate MNT1 trillion to the National Wealth Fund. However, neither the final amount of the dividends nor the definitive spending plan has been approved.

Public consultation to run until October 28

At its October 14, 2026 meeting, the government presented social and basic infrastructure investment projects to be financed with dividend revenue from Oyu Tolgoi LLC. Public feedback will be collected through the unified e-Mongolia government services system and the e-Zasag online platform, with the consultation scheduled to close at 10 p.m. on October 28.

The consultation asks whether citizens support receiving the dividends, which sectors should be prioritized, and what allocation and spending model would be most appropriate. The results will be submitted to the State Great Khural's budget working group, according to the government.

The process is linked to the draft 2027 state budget, and the public consultation itself will not replace the final budget decision. The criteria for consolidating the feedback and how it will be reflected in the budget allocation will be determined at a later stage.

Source: Government of Mongolia, October 14, 2026.

How is the MNT3 trillion provisionally allocated?

Under the preliminary option presented by the government, the dividend revenue would be divided between two main areas.

• MNT2 trillion, or 66.7 percent: Increasing capacity in the energy sector and funding other investment projects and measures.
• MNT1 trillion, or 33.3 percent: Savings to be placed in the National Wealth Fund.

This proposal would direct the dividends toward public-purpose investment and national savings rather than distributing the money directly to citizens in cash. It is not, however, a finalized spending plan.

Preliminary investment breakdown

According to Bloomberg TV Mongolia, citing a presentation related to the government's draft budget, the MNT2 trillion investment component has been proposed for the following areas.

Source: Bloomberg TV Mongolia, October 14, 2026.

One important point remains. The four areas listed above total MNT1.6154 trillion, leaving MNT384.6 billion of the MNT2 trillion investment component unexplained in this information. The overall allocation therefore cannot yet be considered final.

Has the actual dividend amount been confirmed?

The MNT3 trillion is currently an estimate of revenue that could be received in 2027. It does not mean that the money has been officially confirmed by Oyu Tolgoi LLC or has already been paid.

Whether a dividend will actually be distributed, how much it will amount to and when it will be transferred to the state budget will depend on the company's financial results, relevant corporate decisions, and the contractual and legal conditions governing the parties. Bloomberg TV Mongolia also emphasized in its October 14 report that the dividend amount had not yet been confirmed.

Efforts to increase the benefits Mongolia receives from Oyu Tolgoi did not begin with this budget discussion. On March 9, 2026, the government said it was seeking to increase Mongolia's share of the project's benefits to more than 60 percent, reduce shareholder loan interest and management fees, and resolve the dividend issue. This indicates that negotiations between the parties on increasing the project's benefits have been ongoing.

Source: Government of Mongolia, March 9, 2026.

What impact could this have on citizens?

Directing dividend revenue toward public-purpose investment could generate a different type of benefit from distributing the money directly to citizens.

First, energy reliability. If power plant upgrades and the construction of new generation sources are successfully implemented, they could improve the reliability of electricity supplies and help reduce the risk of interruptions affecting production and businesses. The outcome will depend on project selection, implementation timelines, costs and the conditions under which the projects enter operation.

Second, education and labor productivity. Investment in education could improve learning environments, access to education and workforce skills. However, the schools and programs receiving the funds will be a key factor in determining the actual benefits.

Third, exports and production. Increasing port capacity could improve the transportation of mining and other export products. Funding for agricultural production could support domestic supply and processing industries, although the results will depend on the quality of the investment and market demand.

Fourth, future savings. The proposal to place MNT1 trillion in the National Wealth Fund is intended to preserve part of the country's mining revenue as long-term savings. However, the management and use of the fund's assets, as well as the measurement of future returns, will need to be transparent.

Is there an option to distribute the money directly?

The current option presented by the government does not provide for distributing the dividends directly to citizens in cash. Bloomberg TV Mongolia reported that, because there is no legal framework for paying the dividends in cash, the government is considering placing MNT1 trillion in a citizens' savings fund.

Two concepts need to be distinguished here. Depositing money into a citizens' savings fund is not the same as transferring that money directly into each citizen's account. The benefits available to each citizen, and the conditions for owning and using the fund's assets, would have to be defined by law, the fund's regulations and the distribution mechanism.

There is currently no final information on how much each citizen would receive, when the money would be paid or under what conditions the assets of the citizens' savings fund could be used.

Conclusion

The debate over how to spend Oyu Tolgoi dividend revenue is fundamentally a policy question about how to align the benefits of Mongolia's mining wealth with public investment and long-term savings.

The option currently under discussion focuses on investing in energy, education, export infrastructure and agriculture, while allocating MNT1 trillion to the National Wealth Fund. However, it remains unclear whether the MNT3 trillion in dividends will be confirmed, what the final investment breakdown will be, and how public feedback will affect the decision.

The issue should therefore be considered not simply as a question of paying dividends to citizens, but within the broader framework of budget, investment and wealth-fund policy: how mining revenue should be allocated between current needs and long-term development.