Orano Secures 20-Year Concession for $1.6 Billion Uranium Mine in Mongolia's Zuuvch-Ovoo

Jan 17, 2025, 01:45 PM

French nuclear group Orano has signed a major mining agreement with the Mongolian government to develop a world-class uranium deposit. The agreement, signed on January 17, 2025, in Ulaanbaatar, grants Orano a 20-year concession to construct and operate a significant uranium mine in Mongolia. The project, valued at $1.6 billion, involves an initial investment of 500 million dollars and is expected to start production between 2028 and 2029, producing approximately 2,500 tonnes of uranium annually. This development will utilize the in-situ recovery (ISR) method at the Zuuvch-Ovoo and Dulaan Uul deposits, which together hold about 90,000 tonnes of uranium resources. The mine, to be developed by Badrakh Energy, a joint venture between Orano and the Mongolian state-owned company MonAtom, will create 1600 jobs and require the construction of 100 km of regional roads. The agreement stipulates that at least 51% of the profits from uranium extraction will go to the Mongolian government, and 90% of the mine's workforce will be Mongolian, contributing to France's energy sovereignty and strategic autonomy.