We visited the “Badrakh Energy” LLC uranium project in Ulaanbadrakh soum, Dornogobi aimag, to observe its operations firsthand.
On one hand, the purpose was to see on the ground the preparations for one of the major projects licensed to be implemented in Mongolia at this time. On the other hand, it was to find answers to the information that constantly spreads on social media, claiming that people and livestock in Ulaanbadrakh soum, Dornogobi aimag (province), are being poisoned by uranium and that danger to humans and ecology is imminent. As the saying goes, "Better to see once than hear a thousand times," so we headed to the "Zuuvch-Ovoo" uranium project. Interestingly, although Ulaanbadrakh soum ranks second in the province in size and has a territory larger than that of over 30 countries in the world, this uranium project is the first mining project for the soum.
Preparations for the Uranium Project are Underway
The French "Orano" group owns 66 percent of the company, and the Government of Mongolia owns 34 percent. The Investment Agreement between the Government of Mongolia and "Orano Mining SAS," the investor in the joint Mongolian-French "Badrakh Energy" company, was signed on January 17, 2025. This investment agreement to implement the uranium project in the territory of Dornogobi aimag is Mongolia's second investment agreement implemented with a "third neighbor" country since the "Oyu Tolgoi" project. It is also the first major Mongolia-European Union project. This is because the uranium produced by the joint project is calculated not only to supply 80 percent of France's energy but also to provide energy to countries such as England, Germany, Italy, Spain, Switzerland, the Netherlands, Luxembourg, and Belgium for the next 60 years. In this context, analysts believe the project will have a positive impact on the investment climate of Mongolia. Furthermore, converting the 34 percent common shares into 10 percent preferred shares and substituting the remaining 24 percent with a special royalty for mineral resource exploitation (AMNAT) is significant as it eliminates the risk of waiting for dividends or incurring additional debt, allowing Mongolians to receive benefits immediately from the start of the project. The company, which began operations in 1997, discovered the Dulaan-Uul uranium deposit with 7,000 tonnes of reserves in 2006 and the Zuuvch-Ovoo uranium deposit with 93,000 tonnes (total 100,345 tonnes) of reserves in 2010.
Currently, Mongolia's registered proven uranium reserves stand at around 200,000 tonnes. These reserves, it accounts for 3 percent of global uranium reserves, ranking 10th in the world in terms of reserve size.
The proven reserves of the "Badrakh Energy" company's uranium projects account for over 50 percent of Mongolia's total reserves. According to the Investment Agreement, the project's "Shareholders' Agreement" and "Deposit Mining Agreement" must be amended and approved by 2025. Subsequently, plant construction work is planned to begin in 2026, with the Zuuvch-Ovoo mine starting main extraction and producing its first product by October 2028. Once the plant operates at full capacity, it will produce 2,500 tonnes of yellowcake uranium per year (our country will produce only yellowcake, not the final product), and based on current proven reserves, it is calculated to operate for an initial period of 33 years. Although the Investment Agreement is concluded for 20 years, if new uranium reserves are discovered, the agreement implies the term will be extended until the plant's operational potential is exhausted. The company announced that, along with the plant construction, work will begin on a 110 km road and a 110 kV overhead power transmission line in the Zuunbayan-Ulaanbadrakh direction. These developments are planned to be commissioned within the first half of 2027. The project's plant is planned to be built following the standards of mines such as KATCO in the Republic of Kazakhstan. Overall, the uranium extraction and processing facilities, sulfuric acid plant, and associated technologies of Badrakh Energy LLC’s project in Ulaanbadrakh will be developed in accordance with the standards applied at uranium mines in Kazakhstan.
The initial investment of the project is planned at USD 500 million, with a total investment amount of  USD 1.7 billion, which is considered a high amount of foreign direct investment for Mongolia
The total benefit our country will receive from the project, calculated to operate for a total of 33 years, is USD 5.2 billion. During the project implementation, "Badrakh Energy" company will provide economic and social benefits to Mongolians and create new jobs; additionally, within the scope of the project, it will produce 68.9 thousand tonnes of uranium raw material – the main raw material for nuclear energy, which is green energy – and prevent the emission of 4 billion tonnes of carbon dioxide during the mine's operation. Preparations are underway for the implementation of such a project. "Badrakh Energy" company officials emphasized that all work is proceeding normally according to the schedule reflected in the Investment Agreement.
Many new tasks related to uranium production, such as amending the "Shareholders' Agreement" and "Deposit Mining Agreement," conducting a Detailed Environmental Impact Assessment, conducting water studies, performing the Project's Social and Economic Impact Assessment, and establishing the legal framework for transporting and exporting radioactive materials, need to be completed before 2028.
Additionally, the "Badrakh Energy" uranium project site is located entirely within the territory of Ulaanbadrakh soum, while Zuunbayan is a transit point and a reserve area where an airport can be built if necessary.

Published Date:2025-12-17