Mongolia Acquires 10% Preference Shares
Mongolian President U.Khurelsukh Signs $1.7 Billion Investment Agreement with French Company for Uranium Mining Venture
During his recent visit to France, Mongolian President U.Khurelsukh signed a landmark agreement with the French government-owned Orano Mining, worth USD 1.7 billion. This agreement paves the way for Orano to establish Mongolia’s first uranium mining and processing venture, marking a significant milestone for the country’s economy.
The strategic partnership with Orano is expected to bring substantial economic benefits to Mongolia. Over the projected 30-year lifespan of the mine, Ulaanbaatar is estimated to earn a total of $1 billion in tax revenue. The mining operations will span 20 years, followed by 10 years of reclamation. Additionally, Mongolia will own 10 percent preference shares in the venture, further solidifying its stake in the project.
Since President U.Khurelsukh’s visit to France, multiple working groups have collaborated on the draft contract, with three international consulting services companies contributing to the investment agreement. The finalization of the agreement is expected in early October, following successful negotiations inspired by a similar partnership in Kazakhstan.
With the Orano agreement set to create new opportunities for Mongolia’s mining sector, the country looks forward to leveraging foreign partnerships as strategic tools for economic growth and foreign policy endeavors.
