Uzbekistan’s Navoiyuran and France’s Orano have established a cooperation agreement for developing the Yuzhny Jengeldy uranium deposit, involving an initial investment of $214 million and a focus on sustainable extraction over at least ten years. This collaboration is part of a broader strategy to expand uranium mining and processing, enabling both companies to enhance operational efficiency and meet growing energy demands.
Uzbekistan’s state-owned enterprise Navoiyuran has signed a significant agreement with the French company Orano concerning the industrial development of the Yuzhny Jengeldy uranium deposit. The initial investment for this venture is estimated at $214 million, with expectations for uranium extraction to continue for a minimum of 10 years.
The agreement was formalized on March 11 during the Uzbek-French business forum, coinciding with President Shavkat Mirziyoyev’s state visit to Paris. This cooperation was signed by Jamal Faizullaev, the General Director of Navoiyuran, and Xavier Saint Martin Tillet, Orano’s Senior Vice President for Mining, and covers joint exploration, extraction processes, environmental safeguards, and community support.
Orano’s engagement lays the groundwork for exploiting the Yuzhny Jengeldy deposit as part of the joint venture, Nurlikum Mining, which integrates with Navoiyuran’s current operations. Certified reserves at this site are anticipated to sustain uranium production for over 10 years, reaching a peak output of 700 metric tons annually.
The framework established by the agreement promotes long-term cooperation within the uranium industry, addressing exploration abroad, the implementation of innovative mining technologies, operational improvements, and the integration of modern corporate governance and ESG standards. The partnership is a continuation of a broader cooperation program between Navoiyuran and Orano, which began with a strategic agreement in 2022.
Xavier Saint Martin Tillet emphasized the project’s significance in diversifying uranium supply, leveraging the results of past endeavors in Uzbekistan, and enhancing the company’s growth through their technical capabilities. In the first development phase, Navoiyuran anticipates investments of $214 million within three years, with an average annual production of 500 tons of uranium.
Founded in December 2019, Nurlikum Mining is a collaboration of Orano and the State Committee for Geology of Uzbekistan, with an interest split of 51% to 49%, respectively. The company’s operational area includes three key uranium zones: North and South Jengeldy, and Yangikuduk.
The expansion of uranium mining and processing is further supported by a trilateral agreement signed in November 2022 among the State Committee for Geology, Navoiyuran, and Orano. Minister of Mining and Geology, Bobir Islamov, highlighted plans from Orano to invest up to $500 million and conduct geological exploration at two additional sites in the Navoi region. As the fifth-largest uranium producer globally, Navoiyuran is vital in maintaining stable nuclear fuel supplies while meeting global clean energy demands, also ranking as Uzbekistan’s third-largest taxpayer in 2024, contributing approximately $355.6 million.
France is increasingly seeking uranium supplies from Central Asia, viewing imports from Uzbekistan and Kazakhstan as viable alternatives to Russian sources, critical for its energy sector dominated by nuclear power.
The recent agreement between Uzbekistan’s Navoiyuran and France’s Orano marks a pivotal advancement in uranium mining, ensuring the development of the Yuzhny Jengeldy deposit and supporting long-term cooperation in the uranium sector. With significant investments and a focus on sustainability, this partnership promises to enhance uranium extraction efficiency while diversifying supply chains critical to both countries’ energy strategies. As global demand for clean energy rises, such collaborations will be essential for stability and growth within the sector.
Original Source: www.gazeta.uz
