Uzbekistan and France’s Navoiyuran and Orano signed an agreement for the development of the Yuzhny Jengeldy uranium deposit, including a $214 million investment. The agreement aims for uranium extraction to continue for a decade, enhancing operational efficiency and environmental standards, while also supporting local communities and diversifying uranium supply sources.
Uzbekistan and France’s state-owned enterprise Navoiyuran and the French company Orano have signed an agreement to develop the Yuzhny Jengeldy uranium deposit. This agreement, established during a business forum on March 11, 2023, during President Shavkat Mirziyoyev’s visit to Paris, projects an initial investment of $214 million and aims for uranium extraction to continue for at least 10 years.
The agreement, signed by Navoiyuran’s general director Jamal Faizullaev and Orano’s senior vice president Xavier Saint Martin Tillet, focuses on the joint exploration and extraction of uranium while emphasizing environmental standards, safety regulations, job creation, and local community support.
With certified reserves, Yuzhny Jengeldy is expected to produce uranium for at least a decade, peaking at 700 metric tons annually. The statement noted that while foreign companies are the primary investors, Navoiyuran will manage operations, leading to cost reductions and seamless integration with existing facilities.
The agreement facilitates a framework for long-term collaboration within the uranium sector, promoting joint exploration, innovative mining technologies, and operational efficiency, alongside corporate governance and ESG standards. This partnership aligns with a strategic agreement signed between Orano and the Uzbek government in 2022 to advance uranium mining efforts.
Xavier Saint Martin Tillet mentioned that the project helps diversify uranium supply sources for Orano, leveraging their expertise to further develop uranium mining in Uzbekistan. The initial three-year phase anticipates an investment of $214 million and an average annual production of 500 tons of uranium.
Formed in December 2019, Nurlikum Mining, a joint venture of Orano and the State Committee for Geology of Uzbekistan, includes promising sandstone-type uranium areas. A trilateral agreement made in November 2022 aimed to enhance uranium mining and processing further.
Minister Bobir Islamov revealed that Orano plans to invest up to $500 million in uranium mining and processing in Uzbekistan, with geological exploration expanding to two additional sites in the Navoi region. Navoiyuran, the fifth-largest global uranium producer, plays a vital role in the nuclear fuel supply chain and contributes significantly to Uzbekistan’s economy, ranking as the third-largest taxpayer in 2024.
Additionally, France shows increasing interest in uranium supplies from Central Asia, exploring alternatives to traditionally sourced Russian fuel, thus underlining the strategic importance of this agreement.
The recent agreement between Uzbekistan and France marks a significant advancement in uranium mining collaboration. With an initial investment of $214 million for the Yuzhny Jengeldy uranium deposit and an expected production of uranium for over a decade, this partnership not only enhances local resource management but also aligns with global energy demands. The initiative emphasizes environmental sustainability, local support, and operational efficiency, promoting a more diversified nuclear fuel supply chain for France.
Original Source: www.gazeta.uz
