As Orano SA prepares to launch its $1.6 billion uranium project in Mongolia, observers point to a significant supply chain vulnerability — the operation’s likely dependence on Russian sulfuric acid imports.
The French state-controlled miner, which recently secured approval to begin production in 2028, faces a challenging regional market for sulfuric acid, an essential component in uranium extraction.
The concern stems from Mongolia’s industrial landscape — the country currently relies on Russia for nearly all its sulfuric acid needs. And the timing is particularly sensitive. Orano’s project, set to reach peak uranium production of 2,600 tons annually by 2044, emerges as the global nuclear industry struggles with supply chain reorganization.
Recent events in Niger, where Orano lost control of its mining operations following political upheaval, have highlighted the importance of secure supply lines.
Read: France’s Orano Loses Command of Uranium Mines to Niger Junta
Regional sulfuric acid production capacity may offer limited alternatives. While neighboring Kazakhstan is expanding its acid production facilities, growing domestic demand from its own uranium sector and agriculture may constrain export availability.
The project’s success could hinge on Orano’s ability to secure reliable acid supply chains before production begins, a challenge that will shape the venture’s role in meeting rising global uranium demand.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Mongolia is positioned between Russia and China. China will become the biggest importer of uranium in the future. It is very interested in uranium mines in the neighboring Mongolia.
China is the biggest industrial country and perhaps the biggest potential source of sulphuric acid. I would further guess that China will play with Orano in terms of sulphuric acid like they do .
I would recommend France to try to reestablish their influence in Africa (lost to Russia) and Orano to prefer to regain their mines in Africa, to invest in Canada, or their own ressources in the Massiv Central.
It is perhaps better to sell their assets in Mongolia to Chinese miners or Kazatomprom