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France’s Orano Group Finalizes Uranium Deal with Mongolia

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Highlights

  • Mongolia and Orano Group signed a $1.6 billion investment agreement for the Zuuvch-Ovoo uranium mining project in Dornogovi province.
  • The project will hold approximately 90,000 tons of uranium.
  • The project will create 1,600 jobs.
  • Production is expected to commence in 2028.
  • The agreement supports Mongolia’s economic strategy and positions the country as a key player in the global clean energy transition.

Mongolia has finalized a significant investment agreement with France’s Orano Group (opens in a new tab) to develop the long-anticipated Zuuvch-Ovoo (opens in a new tab) uranium mining project in the country’s southeastern Dornogovi province. The agreement, which was officially signed on January 17th in Ulaanbaatar, marks a major step forward in Mongolia’s efforts to position itself as a key player in the global uranium market. Details were offered in a January 17 press release (opens in a new tab) from Orano.

90,000 tons of Uranium

The signing ceremony was attended by representatives of the Mongolian government, Laurent Saint-Martin, France’s Minister Delegate for Foreign Trade and French Nationals Abroad, Nicolas Maes (opens in a new tab), CEO of Orano, and Xavier Saint Martin Tillet, Senior Executive Vice President of Orano’s Mining Business Unit. The agreement, which follows a parliamentary review and approval process, signifies 27 years of collaboration between Orano and Mongolia. Badrakh Energy, a joint venture between Orano and Mongolia’s state-owned MonAtom Group (opens in a new tab), will oversee the industrial operation of the Zuuvch-Ovoo and Dulaan Uul / Umnut uranium deposits. These deposits are estimated to hold around 90,000 tons of uranium, making them a major asset for the country’s mining sector. The project is expected to have an operational lifespan of 30 years.

Deal worth $1.6 billion over time

The initial investment for the project stands at $500 million, with a total projected investment of $1.6 billion over its lifetime. The development phase, spanning from 2024 to 2027, will pave the way for the mine to commence production in 2028. Once fully operational, the Zuuvch-Ovoo mine is expected to produce approximately 2,500 tonnes of uranium annually and create around 1,600 direct and indirect jobs. The project will adhere to international standards in safety, security, and environmental practices, establishing a benchmark for responsible uranium mining in Mongolia. Additionally, Orano has committed to investing in local workforce training and engaging with local communities to ensure mutual benefits and sustainable development.

Milestone for foreign investment in Mongolia

With global demand for uranium expected to rise in the coming years, this agreement positions Mongolia as an important contributor to the global clean energy transition. Orano’s CEO, Nicolas Maes, emphasized the strategic importance of the project, stating that it will support low-carbon electricity generation and ensure a stable supply of uranium for customers worldwide. Mongolian Prime Minister Oyun-Erdene Luvsannamsrai highlighted the broader economic benefits of the agreement, noting that it aligns with Mongolia’s “New Recovery Policy” and long-term “Vision 2050” strategy. He expressed optimism about the strengthening of relations between Mongolia and France, viewing the agreement as a key milestone in attracting foreign investment and creating employment opportunities for Mongolians.

Overall, the partnership between Mongolia and Orano represents a significant step in the development of the country’s mining sector and its integration into the global nuclear energy supply chain.

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