France and Mongolia inked a $1.7 billion deal, paving the way for uranium mining in Mongolia, according to Orano’s chairman.
The deals came during Mongolian President Ukhnaagiin Khurelsukh‘s visit to Paris. This venture may provide 4% of the world’s uranium supply.
The move offers France an alternative to its current sources, such as Niger. Recently, political turmoil in Niger made the relationship unstable.
France has lost its uranium supply from this African country that previously accounted for 30% of its nuclear power plant needs.
The Grand Nation hosted cultural events for the Mongolian delegation. They included a traditional Mongolian music concert and a Genghis Khan exhibition.
These cultural ties deepen the relationship between the two countries. On the other hand, Mongolia is eager to diversify its trade.
Mongolia Needs to Diversify
Currently, 80% of its exports go to China. Mongolia wants to broaden its partnerships beyond China and Russia.
This aligns well with its “Third Neighbor” policy, which aims to create more diverse diplomatic ties.
France is also keen to diversify its mineral supply chain. Rare earth minerals are crucial for tech applications, including electric cars.
Most funding for these ventures will come from France, with Mongolia also contributing.
Politically, both nations are showing strong support. Emmanuel Macron was the first French president to visit Mongolia.
This set the stage for stronger collaboration between the two countries.
For long-term cooperation, France and Mongolia extended a memorandum of understanding.
This focuses on scientific and geological research. It enables France to tap into Mongolia’s rich mineral resources and supports both nations’ move toward renewable energies.
In summary, the France-Mongolia partnership benefits both countries.
Mongolia diversifies its diplomatic and economic ties, while France secures critical minerals for its clean energy transition.