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Battle for resources: France targets Mongolia’s uranium www.news.az
In a world where competition for resources is increasingly fierce, the $1.6 billion agreement between the French company Orano Mining and Mongolia for the development of the Zoovch-Ovoo uranium deposit raises critical questions. Why is France, with its robust nuclear industry, turning its gaze toward such a remote region? Are there no more accessible options? The answer lies not only in economics but also in the depths of geopolitics.
Mongolia: A silent player in the shadows of giants
Nestled between Russia and China, Mongolia remains a "quiet" player on the global stage. Despite its modest economic indicators, the country boasts impressive natural wealth, including significant uranium reserves. However, uranium mining in Mongolia has been sporadic, with the last major projects conducted by Russian companies before 1995.
For France, Mongolia presents a unique opportunity. First, it offers strategically critical resources while lying on the periphery of two global powers—Russia and China. Second, Mongolia’s historical inclination to maintain balance between its neighbors makes it an open partner for Western nations, including France.
The preliminary agreement outlines $500 million in initial investments (2024–2027) and a total of $1.6 billion for the project. If realized, the Zoovch-Ovoo mine will become Mongolia's largest mining operation since the famed Oyu Tolgoi copper and gold mine. This positions Mongolia to strengthen its role in the global uranium market while granting France access to a strategically vital resource.
Why Mongolia?
At first glance, Mongolia might seem an illogical choice. Why would France opt for such a logistically complex undertaking when African countries, geographically closer to Europe, are rich in uranium? The answer lies in the political and economic realities of the day.
Many African nations traditionally supplying uranium to France are grappling with severe internal challenges. For instance, Niger—long a primary supplier for France’s nuclear industry—has been destabilized by a military coup, fostering anti-French sentiment and complicating operations for French companies. Additionally, Russia’s influence in the region has grown through proxies like the Wagner Group.
Closer uranium reserves in Europe have been heavily exploited, leading to dwindling supplies. Mongolia, on the other hand, holds significant untapped reserves. The Zoovch-Ovoo site alone boasts confirmed reserves of 57,000 tons, making it one of the largest deposits in the region.
France’s objective is not merely to secure uranium for the short term. The nation is diversifying its supply of strategic resources, particularly in the wake of the Ukraine war. As Europe seeks to reduce dependency on Russian energy, Mongolia emerges as a pivotal partner.
Geopolitics: Countering Russia and China
Mongolia’s position between Russia and China places it at the heart of a grand geopolitical game. By collaborating with Mongolia, France signals its intent to reduce reliance on Russian energy. Simultaneously, it acts as a counterweight to China’s growing influence in the region.
Historically, Russia was Mongolia’s primary partner in uranium development. However, since the 1990s, Russia’s influence has waned, and major projects have ceased. France’s collaboration with Mongolia represents another marker of Russia’s diminishing role in the global energy sector. Losing access to Mongolian uranium highlights Moscow’s broader retreat from strategic industries in the global economy.
China, Mongolia’s largest economic partner, engages in extensive trade with the country, particularly in coal, copper, and other resources. France’s entry into the Mongolian economy offers an alternative to China’s dominance. For Ulaanbaatar, this partnership balances its economic dependency on China while strengthening its sovereignty.
Economics vs. Logistics
Developing the Zoovch-Ovoo uranium deposit comes with significant challenges. The logistical hurdles of transporting uranium from Central Asia to Europe will require substantial investment. Yet for France, the risk is justified. Uranium extracted from Zoovch-Ovoo will fuel France’s nuclear industry, the backbone of its energy independence. Nuclear power generates around 70% of France’s electricity, making a stable uranium supply a national priority.
Additionally, the project incorporates cutting-edge technology. The planned in-situ leaching method for uranium extraction is one of the most efficient and environmentally friendly techniques, reducing costs and minimizing ecological impact.
Challenges and opportunities
Despite its promise, the project faces several risks: 1) political risks: Mongolia’s political system can be unpredictable. Leadership changes may affect the terms of cooperation; 2) regional risks: The reactions of Russia and China to France’s growing influence in the region are uncertain; 3) economic risks: A $1.6 billion investment requires long-term profitability, which could be influenced by volatility in global uranium markets.
Nonetheless, the project promises significant benefits for Mongolia. Investments will create new jobs, boost GDP growth, and solidify the country’s role on the international stage.
Uranium as a strategic weapon
The collaboration between France and Mongolia is about more than uranium mining. It is part of a larger geopolitical strategy where each side pursues its interests. France seeks to strengthen its energy independence, counter Russia and China’s influence, and secure a new Asian partner. Mongolia, balancing between two global giants, uses this project as a lever to enhance its economy and political sovereignty. As the world enters an era where resources are the foundation of power, uranium—the "fuel of the future"—becomes a key to geopolitical ambitions. Mongolia is emerging as a new player in this game, and its role will only grow in importance.
By Asif Aydinli
Published Date:2024-12-29
