Uzbekistan and France Forge New Agreement for Uranium Mining Development
Navoiyuran of Uzbekistan and Orano of France signed a cooperation agreement to develop the Yuzhny Jengeldy uranium deposit, with an estimated initial investment of $214 million and a production forecast extending over at least 10 years. The project emphasizes environmental standards, job creation, and community support while facilitating long-term collaboration in uranium exploration and extraction.
Uzbekistan’s state-owned enterprise Navoiyuran has entered into a cooperation agreement with the French company Orano for the industrial development of the Yuzhny Jengeldy uranium deposit. This agreement, signed on 11 March during an Uzbek-French business forum, signifies a substantial investment of approximately $214 million for a mining project anticipated to last a minimum of ten years.
The agreement was formalized by Jamal Faizullaev, General Director of Navoiyuran, and Xavier Saint Martin Tillet, Senior Vice President for Mining at Orano. It delineates responsibilities for joint exploration and uranium extraction, ensuring adherence to environmental standards, safety regulations, job creation, and support for local communities.
The Yuzhny Jengeldy deposit, anticipated to yield uranium production for at least ten years, is expected to reach peak output of 700 metric tons annually. This project is part of a joint venture, Nurlikum Mining, devised to integrate with existing Navoiyuran facilities, which will manage operations.
The agreement aims to foster long-term collaboration, allowing for joint exploration and development initiatives internationally, and the adoption of modern mining technologies, knowledge sharing, and improved corporate governance practices. This initiative fits into Navoiyuran’s broader cooperation strategy established in a prior agreement with the Uzbek government.
Xavier Saint Martin Tillet emphasized that this project is pivotal for diversifying uranium supply sources and expanding operations in Uzbekistan through the application of Orano’s technical expertise. Navoiyuran anticipates initial investments equating to $214 million over three years, envisioning an average annual output of 500 tons during the initial phase.
Nurlikum Mining, formed in December 2019, is a collaborative establishment with Orano holding a 51% stake. Its resource base encompasses three key sandstone-type uranium areas. In a strategic trilateral agreement forged in November 2022, the expansion of uranium mining was outlined.
The Minister of Mining and Geology, Bobir Islamov, indicated that Orano’s investment could reach up to $500 million with geological explorations planned for additional sites. Navoiyuran, ranked fifth globally in uranium production, is vital in sustaining responsible nuclear fuel supplies, contributing significantly to Uzbekistan’s economy as a substantial taxpayer.
In summary, the cooperation agreement between Navoiyuran and Orano marks a significant investment in uranium mining within Uzbekistan, demonstrating a strategic partnership aimed at enhancing production capacity and implementing modern mining practices. This initiative is part of a broader effort to diversify uranium supply sources and supports Uzbekistan’s ambitions within the nuclear fuel sector.
Original Source: www.gazeta.uz
