On January 17, 2025, the Government of Mongolia signed an investment agreement with Orano, a French-registered company investing in the Mongolian-French joint venture, Badrakh Energy LLC to develop world-class uranium deposit. 

Under an investment agreement, Badrakh Energy—a joint venture between Orano and Mongolia’s state-owned MonAtom Group — will oversee the industrial operation of the Zuuvch-Ovoo and Dulaan Uul/Umnut uranium deposits, which contain an estimated 90,000 tonnes of uranium resources.

The project is expected to have a 30-year lifespan, requiring an initial investment of approximately $500 million before production begins, with total investment reaching $1.6 billion over its lifetime. It is projected to create 1,600 direct and indirect jobs.

The project will progress in three key phases: the preparatory stage from 2024 to 2028, active mining operations from 2028 to 2044, and a dedicated 10-year mine closure and rehabilitation period thereafter.

I believe this project will give countries confidence in Mongolia’s investment environment and will be the starting point for an important revival of foreign direct investment, particularly investment into clean energy. We are taking an important step towards fulfilling the obligations and commitments to the United Nations and the international community under the 2015 Paris Agreement on combating climate change. As part of this project, 68.9 thousand tons of uranium, the main raw material for green energy, nuclear energy, will be produced, reducing the country's greenhouse gas emissions by 3.9 billion tons, compared to traditional coal-fueled power plants.

- Oyun-Erdene Luvsannamsrai,
Prime Minister of Mongolia

Development is planned to span four years, after which the Zuuvch-Ovoo mine will commence production, with an estimated nominal capacity of 2,500 tonnes of uranium per year. Based on the current feasibility study, mining usage payments are anticipated to begin by the end of 2028, following the completion of production and the commencement of exports. Additionally, further dividend distributions are expected from 2031, once market conditions have stabilized.

For Mongolia, the Uranium Investment Agreement underscores Mongolia’s commitment to integrating into the global clean energy supply chain, making it a strategically significant initiative.

Its implementation is expected to yield numerous benefits, including attracting foreign direct investment, boosting state and local revenues, generating employment opportunities, fostering local development, contributing to national savings through the sovereign wealth fund, and facilitating the adoption of advanced technologies.