(Bloomberg) — A $1.6 billion uranium mining deal between France and Mongolia that is part of French efforts to diversify supplies to power its fleet of nuclear reactors is running into political hurdles.
A debate about protecting strategic resources in Mongolia risks delaying the finalization of the agreement until after elections in June, according to two people familiar with the matter who asked not to be identified. Progress has also been hampered after the Asian country’s chief negotiator stepped down, a third person said, meaning the deal had to be redrafted.
French uranium producer Orano SA reached an outline accord to develop and operate the Zuuvch-Ovoo mine in Mongolia in October during a trip by the nation’s president, Khurelsukh Ukhnaa, to Paris to meet with counterpart Emmanuel Macron.
A final investment agreement was expected to be signed by the end of last year, with production due to start in 2028.
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