Orano Secures Investment Deal with Mongolian Government
Orano Group Signs Investment Agreement for Development of Uranium Mine in Mongolia
The Orano Group has officially signed an investment agreement for the development and operation of the Zuuvch-Ovoo uranium mine located in Mongolia’s southeastern Dornogovi province. The signing ceremony took place on January 17th in Ulaanbaatar, with key representatives from the Mongolian government, Laurent Saint-Martin, Minister Delegate for Foreign Trade and French Nationals Abroad, and Nicolas Maes, CEO of Orano, among others in attendance.
This agreement, which has been ratified by the government after approval by the Mongolian parliament, signifies 27 years of presence and partnership in Mongolia by the Orano Group.
Under the terms of the agreement, the industrial operation of the major Zuuvch-Ovoo and Dulaan Uul / Umnut deposits, with estimated uranium resources of close to 90,000 tonnes, will be the responsibility of Badrakh Energy. Badrakh Energy is a joint venture between Orano and Mongolia’s state-owned MonAtom Group.
The project, with an estimated lifespan of 30 years, represents an initial investment of approximately $500 million before the deposit becomes operational, and a total investment of $1.6 billion over the mine’s lifetime. This will create 1,600 direct and indirect jobs.
It is planned that the development of the project will take 4 years, after which the Zuuvch-Ovoo mine will start production at an estimated nominal capacity of around 2,500 tonnes of uranium per year.
The Franco-Mongolian project will adhere to international standards and advanced practices in safety, security, and environmental protection, establishing a benchmark for the uranium industry in Mongolia.
Through this agreement, Orano is committing to a long-term partnership with the local communities, focusing on responsible mining practices and investing in the training of a qualified local workforce.
Nicolas Maes, CEO of Orano, expressed his pride in signing this investment agreement, highlighting the benefits it will bring to both Orano and its Mongolian partners in the long term.
Mongolia’s Prime Minister, Oyun-Erdene Luvsannamsrai, also commented on the agreement, emphasizing its importance in promoting inward investment and employment opportunities for the people of Mongolia. He noted that this agreement aligns with Mongolia’s economic growth goals and their commitment to collaboration with international partners, particularly France.
With the demand for uranium expected to remain strong in the coming years, Mongolia is positioning itself as a key player in the global effort to combat climate change through the production of low-carbon electricity. This agreement marks a significant milestone in the development of the uranium industry in Mongolia and strengthens the ties between Mongolia and France.
By entering into this agreement, Orano and its partners are working towards a sustainable future that benefits both the local community and the global environment.
