Mongolia and France have reportedly signed a $1.7B deal paving the way for French uranium (and lithium) mining in the country.
Why uranium?
France currently operates 56 nuclear power plants, which accounted for over 60% of the country’s electricity needs last year. And Paris is working to reduce its dependence on Russian nuclear fuel and other inputs.
And why Mongolia? Mongolia’s landlocked location between Russia and China leaves it keen to diversify its partners. And that same strategic location also makes it a priority partner for others:
- 🇨🇳 President Xi hosted his Mongolian counterpart in July, and
- 🇺🇸 The US hosted Mongolia’s prime minister in August.
Intrigue’s take: Resource partnerships with Mongolia aren’t as straightforward as they look. Russia has been attempting to develop the country’s uranium mining sector since the 1950s with little success.
Also worth noting:
- Mongolia holds about 2% of the world’s recoverable uranium.
