Mongolia Signs $1.6bn Mining Deal With French Nuclear Giant Orano

Mongolia on Friday signed a landmark $1.6 billion investment agreement with French nuclear giant Orano, paving the way for the development of the world-class Zuuvch-Ovoo uranium deposit in the country’s southwest. The agreement, signed by French Foreign Trade Minister Laurent Saint-Martin, Orano CEO Nicolas Maes, and Mongolian officials, marks a significant step in the two nations’ collaboration.

Key Details:

• Investment Scope: The project entails a $1.6 billion investment, starting with an initial $500 million. The first production is slated for 2027, with an estimated mine life of 30 years.
• Production Potential: The Zuuvch-Ovoo deposit contains around 90,000 tonnes of uranium resources. Annual production is expected to reach 2,500 tonnes, roughly 25% of France's nuclear energy requirements.
• Global Significance: The deposit ranks among the world's top 10 uranium reserves and positions Mongolia as a major player in the global uranium market.

The project has been under development for several years by Badrakh Energy, a joint venture between Orano and Mongolia's state-owned MonAtom. It aligns with France's strategy to secure critical energy resources and strengthen its energy sovereignty.

At the signing ceremony, Minister Saint-Martin emphasized the agreement's importance:

"This project is vital for France's energy independence and will elevate Mongolia’s status in the global uranium market."

With this deal, Mongolia cements its place as a key supplier of uranium, while France fortifies its nuclear energy supply chain. This partnership could open doors for further collaborations in the energy and mining sectors, benefitting both nations.