ECNETNews reports that the Orano Group has finalized an investment agreement for the development and operation of the Zuuvch-Ovoo uranium mine located in southeastern Mongolia’s Dornogovi province. The signing ceremony occurred on January 17th in Ulaanbaatar, attended by representatives from the Mongolian government and top officials from Orano.
This agreement, ratified by the government after parliamentary review, signifies 27 years of collaboration in Mongolia.
According to the agreement, Badrakh Energy— a joint venture between Orano and Mongolia’s state-owned MonAtom Group— will oversee the industrial operations of the Zuuvch-Ovoo and Dulaan Uul / Umnut ore deposits, which hold estimated uranium resources of nearly 90,000 tonnes.
The project is projected to have a lifespan of 30 years, involving an initial investment of approximately $500 million prior to production and a total commitment of $1.6 billion throughout the mine’s operational lifetime, generating around 1,600 direct and indirect jobs.
Development is expected to take four years, after which the Zuuvch-Ovoo mine aims to achieve a nominal capacity of about 2,500 tonnes of uranium annually.
This Franco-Mongolian initiative will adhere to international safety, security, and environmental standards, establishing a new benchmark for the uranium industry in Mongolia.
Orano underscores its long-term commitment to responsible mining, focusing on development programs that will benefit local communities, including substantial investments in the training of a skilled local workforce.
With robust uranium demand anticipated in the coming decades, Mongolia is positioning itself as a vital player and contributor in the global climate effort.
Officials from Orano expressed pride in signing this investment agreement, which lays the groundwork for a sustainable partnership that benefits both Orano and its Mongolian counterparts. The production of uranium in Mongolia is set to enhance low-carbon electricity generation and secure supply chains for customers.
Mongolia’s Prime Minister highlighted that this agreement represents a significant advancement in attracting investment and creating job opportunities for the local populace. It reflects the government’s commitment to economic development and strategic partnerships, particularly in collaboration with international allies.
ECNETNews
