Orano has entered the construction phase of the Zuuvch Ovoo uranium project in Mongolia. A groundbreaking ceremony held at the project site marked the start of development activities. The project is positioned to support expanding global nuclear energy demand.
The event was attended by Mongolian officials including Dornogobi Province Governor Batjargal Ochirpurev, Ulaanbadrakh Sum Governor Ganburen Gansukh, and Nuclear Energy Commission Secretary Manlaijav Gun-Aajav. Orano Chairman Claude Imauven said construction launch advances the partnership between France and Mongolia. He also referenced cooperation between the two countries and a focus on economic value for local communities and the broader region.
Project partnership, investment agreement and benefit sharing
The Zuuvch Ovoo uranium deposit is located in southeastern Mongolia within Dornogovi Province. The project is being developed through a partnership between Orano and its Mongolian subsidiary Badrakh Energy, together with local stakeholders. An investment agreement between Orano and the Government of Mongolia was signed in January 2025.
The agreement sets out the framework for long-term development and operation of the mine. It also provides for Mongolia to receive a substantial share of economic benefits from the operation. More than 51% of direct benefits generated are expected to flow to the Mongolian state over the life of the project.
Mongolia’s uranium resource base and prior production history
Mongolia holds large undeveloped uranium resources, with industry data placing resources at approximately 144,600 tonnes as of 2023. This ranks the country among top uranium-rich nations globally. Uranium mining in Mongolia has historical roots, but commercial production effectively ended in the mid-1990s.
The cessation followed closure of the Dornod uranium mine, which had previously operated with Russian involvement. Since then, Mongolia’s uranium sector has remained largely undeveloped despite its resource base. Development of Zuuvch Ovoo is described as a revival of Mongolia’s uranium industry.
Exploration timeline leading to deposit discovery
Orano’s work in Mongolia spans more than 25 years. The company began exploration activities in the Gobi Desert in 1997. It continued extensive geological work across the region following initial exploration.
The exploration program resulted in discovery of the Zuuvch Ovoo deposit in 2010. Technical studies, environmental assessments, and pilot testing were carried out ahead of full-scale development. Between 2021 and 2022, pilot operations were completed to demonstrate viability of the planned mining method.
In-situ recovery approach for uranium extraction
A central element of the project is use of In-Situ Recovery (ISR), also referred to as In-Situ Leaching (ISL). The technique is used in modern uranium production. Rather than relying on conventional open-pit or underground excavation, ISR recovers uranium by circulating solutions through underground ore-bearing formations.
The method is intended to reduce surface disturbance and lower infrastructure requirements compared with traditional mining approaches. Successful pilot programs conducted during 2021 and 2022 confirmed suitability of ISR for the Zuuvch Ovoo deposit. This outcome supports progression toward commercial-scale production.
Mine schedule, output targets and employment estimates
Project development is expected to take approximately four years, with commercial production planned after construction activities are completed. At full capacity, annual output is expected to reach around 2,500 tonnes of uranium. The mine is projected to operate for approximately 30 years.
The operation is expected to provide long-term employment, investment, and government revenues. It is also forecast to generate around 1,600 direct and indirect jobs. These figures are linked to broader regional development across Dornogovi Province.
Global demand backdrop for new uranium projects
The project timing aligns with rising global demand for uranium as countries expand nuclear energy programs. Many jurisdictions are extending operating lives of existing reactors while planning new capacity to meet electricity demand. This trend has increased investment interest in new mining projects worldwide.
For Mongolia, Zuuvch Ovoo development is presented as an opportunity to diversify beyond traditional commodities while participating in international nuclear fuel supply chains. As construction proceeds, the project is expected to support growth within Mongolia’s emerging uranium industry over the long term.
