A long-awaited uranium mining venture in Mongolia, spearheaded by the French state-controlled company Orano SA, is on track to begin production by 2030, according to company representatives.
The Zuuvch Ovoo mine, which has faced numerous delays, could commence commercial output after an anticipated five years of construction. This timeline is contingent upon the signing of an investment agreement. A crucial vote in Mongolia’s parliament regarding the project is expected during the current legislative session.
With global uranium demand on the rise—especially as China continues to expand its nuclear energy capabilities and other countries in Europe and Asia plan to build reactors as part of their emissions reduction strategies—the potential for Zuuvch Ovoo is significant. If approved, this project could become Mongolia’s largest mining initiative since the Oyu Tolgoi copper-gold mine, which has seen a protracted development process, culminating in an underground expansion that opened last year.
Orano’s representative in Mongolia, Olivier Thoumyre, emphasized the country’s potential to emerge as a “major player” in the uranium market during an industry event in Nalaikh, near the capital, Ulaanbaatar. The Zuuvch Ovoo project has been in the works since before 2013, when Areva SA—Orano’s predecessor—formed a joint venture with Mongolia’s state-owned nuclear company, Mon-Atom.
The recent reappointment of Prime Minister Oyun-Erdene Luvsannamsrai in July has bolstered confidence in ongoing policy stability, as his administration previously engaged in negotiations with Orano regarding the mine. “Discussions have continued without interruption over the terms,” Thoumyre stated on Thursday.
