December 27, 2024 - French mining company Orano announced a significant development in its operations in Mongolia. The government of Ulaanbaatar has confirmed an agreement with Orano, paving the way for discussions with the Mongolian Parliament regarding the exploitation of an uranium mine located in Dornogovi province, southeastern Mongolia.
The total investment for the project is estimated at €1.6 billion, with an initial phase requiring €500 million. Following a preparatory phase expected to last until 2027, mining operations are scheduled to commence in 2028 and continue until 2060, followed by a decade of site rehabilitation. The project is projected to generate €13.5 billion in revenue over its operational lifespan.
This initiative positions Mongolia as a potential sixth-largest uranium producer globally, with estimated reserves of 192,000 tonnes. The Mongolian government highlighted that this agreement signifies a new chapter in Franco-Mongolian economic relations, particularly in the field of energy transition.
For Orano, this agreement is crucial as it seeks to diversify its supply sources after the recent coup in Niger, which had previously blocked access to resources that accounted for approximately 15% of Orano's supply volumes in 2023.