KEY POINTS
- Mongolia and Orano collaborate to develop a major uranium mining project.
- Full production is slated for 2028.
- The project aims for 2,600 metric tons at peak capacity.
Mongolia has taken a significant step toward expanding its mining sector by reaching a preliminary agreement with France’s Orano Mining Group for a $1.6 billion uranium mining project.
The Mongolian government announced the deal on Friday, noting that the project aims to bolster inward investment and create jobs.
The draft agreement, submitted to Mongolia’s parliament for discussion, outlines an initial $500 million investment for a preparatory phase set to begin in 2024. Full-scale production is expected to commence in 2028, with peak output anticipated to reach 2,600 metric tons by 2044.
Mongolian Prime Minister Oyun-Erdene Luvsannamsrai highlighted the deal’s importance in a statement, saying, “This agreement is a significant step forward in boosting inward investment and employment opportunities for the Mongolian people.”
Preparations underway, production set for 2028
The initial phase of the project will focus on groundwork and preparation, with Orano leveraging its extensive expertise in uranium exploration and mining.
According to Reuters, having operated in Mongolia for over 25 years, the company is well-positioned to support the country’s growing ambitions in the uranium sector.
Orano is a major global uranium producer with operations in Canada, Kazakhstan, and Niger. Its collaboration with Mongolia is expected to bring advanced technologies and processes to the project, ensuring efficiency and sustainability.
While the agreement has generated optimism, full implementation hinges on parliamentary approval and subsequent development milestones.
Clarification on deal status
Earlier announcements suggested a finalized deal, but the Mongolian government later clarified that the agreement remains in the preliminary stage.
A corrected press release emphasized that parliamentary discussions are essential before the agreement can move forward.
Despite the clarification, the agreement marks a major milestone for Mongolia’s mining sector, with stakeholders praising the potential economic benefits.
The project is also seen as a strategic move to position Mongolia as a key player in the global uranium market.
