France has secured a significant alternative uranium source after signing a $1.7 billion deal with Mongolia, as announced by Orano’s chairman. This monumental agreement was reached during Mongolian President Ukhnaagiin Khurelsukh’s visit to Paris, and the endeavor is expected to cater to 4% of the global uranium demand.
The agreement will enable Orano to develop a uranium mine with Mongolian partners under its Badrakh Energy subsidiary, which is 34% owned by a Mongolian government entity.
The urgency of this partnership was accentuated by France’s recent supply disruptions. Niger, which previously met 30% of France’s uranium requirements for its nuclear plants, became an unstable source due to a coup d’etat. As a result, France has been keen on diversifying its supply chain, given that it derives 70% of its energy needs from nuclear power.
READ: Niger Boosts Price of Uranium to €200 Per Kilogram From Just $0.80
At the same time, a deal to search for lithium was signed as France focuses its efforts on a clean energy shift. A preliminary phase of the exploration deal will see France invest 400,000 euros to explore a lithium-rich basin.
A substantial portion of the funding for these projects will be shouldered by France, although Mongolia will also contribute. President Emmanuel Macron’s previous visit to Mongolia, the first by a French president, has paved the way for increased collaboration. The nations have further fortified their partnership by extending a memorandum of understanding centered on scientific and geological research. This agreement facilitates France’s access to Mongolia’s vast mineral resources while also propelling both countries towards a sustainable energy future.
For Mongolia, diversifying trade is equally pressing. Currently, a staggering 80% of Mongolia’s exports are destined for China. Keen to expand its trade partnerships beyond China and Russia, Mongolia’s “Third Neighbor” policy aligns perfectly with this new venture with France.
The two nations showcased their strengthening ties through cultural events hosted by France, including a traditional Mongolian music concert and a Genghis Khan exhibition. The goal is not merely economic but also to enrich diplomatic relations.
Others, however, are less convinced.
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