(Bloomberg) -- A $1.6 billion Franco-Mongolian uranium project will likely see production start in 2028, having cleared a key hurdle after months of delays.
French state-controlled miner Orano SA secured an agreement with the Mongolian government allowing production to start two years earlier than the company’s most recent forecast, according to a Friday statement from Mongolia’s government.
After a preparatory phase ending in 2027, production is expected to ramp up from the following year, peaking at 2,600 tons in 2044, according to the draft agreement submitted to Mongolia’s parliament. Ulaanbaatar expects the the project to generate sales of $13.4 billion over its life cycle.
The project has faced several delays, including debates over protecting strategic resources in the central Asian nation. Meanwhile, global uranium demand is rebounding as China continues to add plants, while other nations in Asia and Europe are preparing to build reactors as part of strategies to curb emissions.
Global supplies were also hit after the coup in Niger. Orano said earlier this month that the country’s military junta had taken operational control of its mine.
(Corrects peak annual production in 3rd paragraph. The correction reflects a rectification of the official statement from the Government of Mongolia.)
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