Mongolia signs landmark mining deal with French nuclear giant

ULAANBAATAR, Jan 17, 2025 (AFP) - Mongolia on Friday signed a $1.6 billion investment deal with French nuclear giant Orano allowing it 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 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.