French nuclear fuel giant Orano has officially entered the construction phase of its highly anticipated Zuuvch Ovoo uranium project in Mongolia, marking a major milestone for both the country’s mining sector and the global uranium industry. The groundbreaking ceremony at the project site signals the beginning of a strategic development that is expected to transform Mongolia into a significant uranium-producing nation while supporting the growing global demand for nuclear energy.
The ceremony was attended by key Mongolian government representatives, including Dornogobi Province Governor Batjargal Ochirpurev, Ulaanbadrakh Sum Governor Ganburen Gansukh, and Nuclear Energy Commission Secretary Manlaijav Gun-Aajav, highlighting the importance of the project for Mongolia’s long-term economic development.
According to Orano Chairman Claude Imauven, the launch of construction represents a decisive step forward in the partnership between France and Mongolia. He emphasized that the project reflects the strong cooperation between the two nations and their shared commitment to creating sustainable economic value for local communities and the broader region.
Strategic Uranium Project Strengthens Mongolia’s Mining Sector
The Zuuvch Ovoo uranium deposit, located in southeastern Mongolia’s Dornogovi Province, is one of the country’s most significant mineral development projects. Its advancement comes as global interest in uranium continues to rise amid increasing investments in nuclear power as a reliable low-carbon energy source.
The project is being developed through a partnership between Orano and its Mongolian subsidiary Badrakh Energy, alongside local stakeholders. The investment agreement, signed between Orano and the Government of Mongolia in January 2025, established the framework for the long-term development and operation of the mine.
The agreement also ensures that Mongolia will receive a substantial share of the project’s economic benefits. More than 51% of the direct benefits generated by the operation are expected to flow to the Mongolian state, providing significant revenue opportunities over the life of the mine.
Mongolia Holds Significant Uranium Potential
Mongolia possesses some of the world’s largest undeveloped uranium resources. According to industry data, the country held approximately 144,600 tonnes of uranium resources as of 2023, ranking it among the top uranium-rich nations globally.
Although uranium mining has historical roots in Mongolia, commercial production effectively ceased in the mid-1990s following the closure of the Dornod uranium mine, which had previously operated with Russian involvement. Since then, the country’s uranium sector has remained largely undeveloped despite its substantial resource base.
The development of Zuuvch Ovoo therefore represents a major revival of Mongolia’s uranium industry and could position the country as an increasingly important supplier to international nuclear fuel markets.
More Than Two Decades of Exploration Success
Orano’s presence in Mongolia dates back more than 25 years. The company began exploration activities in the Gobi Desert in 1997 and continued extensive geological work throughout the region.
These efforts culminated in the discovery of the Zuuvch Ovoo deposit in 2010, which has since evolved into one of the most promising uranium projects in Central Asia. Years of technical studies, environmental assessments, and pilot testing have laid the groundwork for full-scale development. Between 2021 and 2022, the project successfully completed pilot operations that demonstrated the viability of its planned mining method.
In-Situ Recovery Technology to Minimize Environmental Impact
A key feature of the project is the use of In-Situ Recovery (ISR), also known as In-Situ Leaching (ISL), a mining technique widely used in modern uranium production. Unlike conventional open-pit or underground mining, ISR extracts uranium by circulating solutions through underground ore-bearing formations, allowing uranium to be recovered without extensive excavation. The method significantly reduces surface disturbance, lowers infrastructure requirements, and generally provides a smaller environmental footprint compared with traditional mining techniques.
The successful pilot programs conducted during 2021 and 2022 confirmed the suitability of ISR technology for the Zuuvch Ovoo deposit, paving the way for commercial-scale production.
Long-Life Uranium Mine With Significant Economic Benefits
Development of the project is expected to take approximately four years, with commercial production planned once construction activities are completed. Upon reaching full capacity, the operation is expected to produce around 2,500 tonnes of uranium annually, making it one of the most important uranium projects in the region.
The mine is projected to operate for approximately 30 years, providing a long-term source of employment, investment, and government revenues. In addition, the project is expected to generate around 1,600 direct and indirect jobs, creating substantial economic opportunities for local communities and supporting broader regional development throughout Dornogovi Province.
Rising Uranium Demand Supports Long-Term Growth
The timing of the project aligns with growing global demand for uranium as countries increasingly embrace nuclear energy to improve energy security and reduce carbon emissions.
Many nations are extending the operational lives of existing nuclear reactors while planning new nuclear capacity to meet rising electricity demand. This global trend has strengthened the outlook for uranium producers and increased investment in new mining projects worldwide.
For Mongolia, the Zuuvch Ovoo development offers an opportunity to diversify its mining sector beyond traditional commodities while becoming an important participant in the global nuclear fuel supply chain.
As construction moves forward, the project is expected to become a cornerstone of Mongolia’s emerging uranium industry and a significant contributor to the country’s long-term economic growth.
