Mongolia and France’s Orano Mining Group have entered into a preliminary agreement with regards to a longawaited uranium mining project valued at $1.6 billion. The Mongolian government announced that the draft has been submitted to parliament in preliminary discussions as part of a significant step toward bringing this major investment into effect.
Preparation works on the project shall be commenced between 2024 and 2027. Production will start as early as 2028, the government having proposed initial investments to stand at $500 million and later increasing all the way to $1.6 billion. Full-scale production will be reached as of 2044 to be estimated at 2,600 metric tons yearly of uranium.
Prime Minister Oyun-Erdene Luvsannamsrai says the deal marks a great milestone in Mongolian economics. He also highlighted how foreign investment will surge along with employment opportunities for citizens due to this agreement. To be able to capitalize its natural resources towards sustainable development is the cornerstone for this administration in this endeavor.
There was, however, some initial confusion surrounding the announcement. An earlier press release incorrectly stated that a final agreement had been reached with Orano. This was later corrected, with officials clarifying that only a preliminary deal had been agreed upon, and further negotiations are needed for finalization.
Orano Mining Group is one of the world’s leading uranium producers. The company has been present in Mongolia for more than 25 years, with a focus on exploration activities. The company also operates mines in Canada, Kazakhstan, and Niger. Orano’s long experience in uranium mining and its high technologies will be crucial in executing this large-scale project.
This development points out Mongolia’s commitment to improving its situation in the world energy market. Uranium is an essential component for the production of nuclear energy and has enormous potential as the world continues shifting toward clean energy sources. The collaboration with Orano could position Mongolia as one of the major suppliers of nuclear fuel in the world.
The draft agreement represents not only a step toward economic growth but also a boost to Mongolia’s international partnerships. Once the parliament starts reviewing the deal, the focus would shift toward ensuring regulatory compliance, infrastructure planning, and sustainable development practices during the preparatory phase.
According to expectations, the project is set to offer massive economic benefits that will increase employment and have a stronger exports portfolio for Mongolia. The developments were closely monitored by observers and stakeholders as it is seen to be something that could significantly change the resource-driven economy of the country.