With $1.7 billion in French funding, Mongolia paves the way for uranium mining

According to the chairman of French nuclear  energy company Orano, France and Mongolia have inked a $1.7 billion agreement that opens the door for uranium mining in the landlocked nation.

According to the framework agreement, Orano will run the Zuuvch-Ovoo mine in southwest Mongolia. Production is expected to start in 2028 after the mine's foundation is laid. Additionally, both nations will work together to find lithium using satellite photography.

After a press conference attended by the leaders of both nations, Orano Chairman Claude Imauven told reporters at the Elysee Palace that having the strong political backing of both leaders was a benefit for them. Imauven noted that Mongolian and French capital would make up the majority of the investment.

The President of Mongolia, Ukhnaagiin Khurelsukh, is currently in Paris for a three-day state visit through Friday, which is a sign of improving relations between the two governments. The first French president to visit Ulaanbaatar was Emmanuel Macron in May.

Under its "Third Neighbor" strategy, Mongolia wants to deepen its diplomatic links with nations other than China and Russia, and France wants to find new sources for rare earths and other commodities. According to the French government, the Orano project might eventually produce 4% of all uranium produced worldwide.

Mongolia fits into France's efforts to diversify and secure raw material supplies, according to Antoine Maire, an associate researcher at the Foundation for Strategic Research, a think tank with offices in Paris.