Mongolian President U.Khurelsukh recently signed a pivotal agreement worth $1.7 billion with Orano Mining, a French government-owned enterprise, during his official visit to France in October 2023. This landmark deal establishes Mongolia’s inaugural uranium mining and processing operation, highlighting the country’s strategic focus on international mining partnerships as a means to bolster its landlocked economy.
The economic implications of the Orano agreement are significant. The Mongolian government estimates that Ulaanbaatar could garner approximately $1 billion in tax revenues throughout the projected 30-year lifespan of the mine. Operations will span 20 years, with an additional 10 years allocated for site reclamation, and Mongolia will hold a 10 percent stake in preference shares.
Following President U.Khurelsukh’s visit, six specialized sub-working groups have diligently crafted the draft contract. Additionally, three international consulting firms provided expertise to facilitate the investment agreement, which is anticipated to be finalized in early October. Building on insights gained from a similar enterprise in Kazakhstan, the parties have successfully navigated negotiations towards conclusion.
