Mongolia reaches deal for $1.6bn uranium mine with France's Orano
Mongolia said on Friday it had reached a preliminary agreement with France's Orano Mining Group to develop a long-expected uranium mining project worth $1.6-billion.
A draft agreement for the deal was submitted to the Mongolian parliament for preliminary discussion, the Mongolian government said.
The project, with an initial investment of $500-million and a total investment of $1.6-billion, will start its preparatory phase from 2024 to 2027, with first production expected in 2028, the government said.
Peak production will hit 2 600 metric tons in 2044, it added.
"This agreement is a significant step forward in boosting inward investment and employment opportunities for the Mongolian people," the statement cited Mongolian Prime Minister Oyun-Erdene Luvsannamsrai as saying.
An earlier press release saying that the government had reached a final agreement with Orano had been issued in error. A corrected press release later clarified that a preliminary deal had been agreed.
Orano, a major uranium producer with mines in Canada, Kazakhstan and Niger, has been in Mongolia for more than 25 years carrying out exploration activities, it said on its website.
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