Mongolia Signs Preliminary Uranium Project Agreement with France

Mongolia has signed a preliminary agreement with French company Orano Mining for the development of the $1.6 billion Zuuvch Ovoo uranium mining project, which aims to bolster foreign investment and create jobs in the country. The project, set to begin its preparatory phase from 2024 to 2027, includes an initial investment of $500 million and is projected to start production in 2028, reaching peak output of 2,600 metric tonnes by 2044. This agreement marks a significant milestone in Mongolia's economic relations with France and positions the nation to become a key player in the global uranium market. The project also emphasizes local participation, mandating that a substantial portion of the workforce and procurement involve Mongolian entities. The strategic importance of this deal stems from Mongolia's uranium reserves and its geopolitical position between Russia and China, making it an attractive partner for France amid increasing competition for resources. Despite early miscommunication regarding the status of the agreement, the deal reflects Mongolia's effort to enhance its mining sector and foster international collaboration.