Mongolia signs $1.6 billion uranium deal with France's Orano

Mongolia signed a $1.6 billion investment deal with French nuclear giant Orano to exploit a vast uranium deposit in its southwest, a move Paris says will enhance its energy independence.

Discussions between Orano and Mongolian authorities began more than two years ago, with a related memorandum of understanding reached during a state visit to France by Mongolian President Ukhnaa Khurelsukh in 2023.

The details of the final agreement are expected to be released later on Friday.

According to a Mongolian government press release, the deal provides for a total investment of $1.6 billion, with an initial outlay of $500 million and the first effective production in 2027.

Orano has described the Zuuvch-Ovoo uranium deposit, discovered by the firm's geologists in southwest Mongolia in 2010, as "world-class".

The deposit contains about 90,000 tonnes of resources that will be extracted over the mine's lifetime, forecast to last 30 years.

According to estimates, production at the future site could reach about 2,500 tonnes per year -- roughly equivalent to a quarter of France's annual nuclear energy needs.

Global uranium market

The deal was signed Friday by France's minister delegate for foreign trade, Laurent Saint-Martin, Orano CEO Nicolas Maes and Mongolian officials.

"The Zuuvch-Ovoo deposit is one of the 10 largest in the world. It will make Mongolia a major new player in the global uranium market," Saint-Martin said at the signing ceremony.

"By helping to secure our energy supplies, this agreement will quite simply contribute to greater sovereignty for France," Saint-Martin added.

Orano, 90 percent of which is owned by the French state, plays a crucial role in ensuring the supply of uranium for the country's power plants.

The Franco-Mongolian project has been in development for several years by Badrakh Energy, a joint venture between Orano and Mongolia's state-owned MonAtom.