French state-controlled mining company Orano SA announced that its long-awaited uranium project in Mongolia, the Zuuvch Ovoo mine, could begin production by 2030, following five years of construction. The project’s future hinges on the signing of an investment agreement, with a confirmation vote scheduled for the current session of Mongolia’s parliament.
Orano’s representative in Mongolia, Olivier Thoumyre, revealed that the mine could become the largest in the country since Rio Tinto’s Oyu Tolgoi copper-gold project. Zuuvch Ovoo has been in development for over a decade, initially launched by Orano’s predecessor, Areva SA, in partnership with Mongolia’s state nuclear company, Mon-Atom.
The global demand for uranium is on the rise as countries such as China continue to build nuclear power plants, and other nations in Europe and Asia focus on nuclear energy as part of their strategies to reduce carbon emissions. This growing demand positions Mongolia to potentially become a key player in the uranium market, according to Thoumyre, who spoke at an industry event in Nalaikh, near Ulaanbaatar.
The reappointment of Prime Minister Oyun-Erdene Luvsannamsrai in July has provided a sense of stability, encouraging continued negotiations between the Mongolian government and Orano. Discussions on the project’s terms, which began a year ago, have remained active, Thoumyre added.
