Mongolia and France Forge Historic Partnership in Uranium Mining
In a landmark deal, the Mongolian government and French energy giant Orano have signed a $1.6 billion investment agreement to develop a massive uranium project in the country’s southeastern Dornogovi province. This significant step forward in the mining sector was marked by the signing of the agreement in Ulaanbaatar, the capital city of Mongolia, on Friday.
A Strategic Move for Both Nations
The project is expected to bolster Orano’s uranium supply and expand its operations in the region, while also providing a major boost to Mongolia’s economy. The agreement brings together Orano and MonAtom Group, the state-owned entity of Mongolia, to develop the Zuuvch-Ovoo and Dulaan Uul/Umnut uranium deposits, which are believed to hold around 90,000 tonnes of the resource.
Joint Venture to Drive Growth
Badrakh Energy, the joint venture between Orano Mining and MonAtom, will be responsible for the operation of the Zuuvch-Ovoo project. This announcement follows a preliminary agreement signed in December 2024 with Orano Mining for the development of the Zuuvch Ovoo uranium mining project.
Phased Development and Job Creation
The project’s preparatory phase will continue until 2027, involving an initial investment of $500 million. Production from the Zuuvch-Ovoo uranium mine is anticipated to commence in 2028, creating 1,600 direct and indirect jobs. Mongolia’s Prime Minister Oyun-Erdene Luvsannamsrai hailed the agreement as a significant step forward in boosting inward investment and employment opportunities for the Mongolian people.
Long-Term Commitment and Economic Growth
The mining project is expected to have a lifespan of 30 years, with an estimated production capacity of approximately 2,500 tonnes of uranium per year. Orano CEO Nicolas Maes emphasized that uranium production in Mongolia will contribute to low-carbon electricity generation and security of supply for customers. The agreement demonstrates Mongolia’s commitment to collaboration with its international partners and its vision for economic growth and development.
Parallel Development in the US
In a related development, Orano has also announced that it has selected Oak Ridge, Tennessee, as the preferred site for its multibillion-dollar US uranium enrichment plant. The facility’s development is supported by Tennessee’s Nuclear Energy Fund, which has $60 million available. This parallel development underscores Orano’s commitment to expanding its operations globally.
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