France’s Orano and Mongolia’s government have signed an investment agreement to develop a $1.6bn uranium project in Dornogovi province located in the south-east of Mongolia.
The investment agreement was signed on Friday in Ulaanbaatar by Mongolian and French officials, marking a significant step for both countries in the mining sector.
This project is expected to bolster Orano’s uranium supply and expand its operations in the region.
Orano has joined forces with MonAtom Group, the state-owned entity of Mongolia, to collaborate on the development of major uranium deposits, Zuuvch-Ovoo and Dulaan Uul/Umnut, which are believed to hold around 90,000 tonnes (t) of the resource.
Badrakh Energy, the joint venture between Orano Mining and MonAtom, is also 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 located in Dornogovi province.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
The project’s preparatory phase will continue until 2027, involving an initial investment of $500m.
Production from the Zuuvch-Ovoo uranium mine is anticipated to commence in 2028. It is expected to create 1,600 direct and indirect jobs.
Mongolia’s Prime Minister Oyun-Erdene Luvsannamsrai stated: “This agreement is a significant step forward in boosting inward investment and employment opportunities for the Mongolian people.”
“It demonstrates our achievements in supporting economic growth and delivering on our aims set out it in the ‘New Recovery Policy’ and ‘Vision 2050’. Equally, it highlights our commitment to collaboration with our third neighbours. We look forward to further strengthening our strong relations with France.”
The mining project is expected to have a lifespan of 30 years, with an estimated production capacity of approximately 2,500t of uranium per year, according to Orano’s statement.
Orano CEO Nicolas Maes said: “Uranium production in Mongolia will contribute both to low-carbon electricity generation and security of supply for our customers”.
In a related development, Orano and the state of Tennessee, US, announced that the state-owned nuclear fuel company 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 $60m available.
