Uzbekistan’s Navoiyuran and France’s Orano have signed an agreement to develop the Yuzhny Jengeldy uranium deposit, ensuring production for at least 10 years. The project involves an investment of $214 million and aims to adhere to environmental and safety standards while creating jobs. Navoiyuran will manage operations, integrating with existing facilities to enhance efficiency and reduce costs.
On March 11, 2023, Uzbekistan’s state-owned enterprise, Navoiyuran, and the French company Orano formalized an agreement to advance the industrial development of the Yuzhny Jengeldy uranium deposit. This agreement, signed during a business forum linked to President Shavkat Mirziyoyev’s visit to Paris, signifies a commitment to enhancing the uranium industry, with an initial investment projected at $214 million.
The signing of the agreement was executed by Jamal Faizullaev, the General Director of Navoiyuran, and Xavier Saint Martin Tillet, the Senior Vice President for Mining at Orano. Within the framework of this agreement, the parties will collaboratively pursue uranium exploration and extraction, adhering to rigorous environmental standards and safety regulations while prioritizing job creation and local community support.
The Yuzhny Jengeldy project is expected to ensure sustainable uranium production for a minimum of ten years, with peak output estimated at approximately 700 metric tons annually. It will operate under the auspices of the Uzbek-French joint venture, Nurlikum Mining, integrating seamlessly with Navoiyuran’s existing production capabilities.
The agreement establishes a solid foundation for extended collaboration in uranium exploration and development. It emphasizes the exchange of innovative mining technologies, enhancement of operational efficiencies, and adherence to modern corporate governance and Environmental, Social, and Governance (ESG) standards. This partnership follows a strategic agreement signed between Orano and the Uzbek government in 2022.
Xavier Saint Martin Tillet remarked on the project’s significance, noting that it aids in diversifying uranium supply for Orano and underscores the collaboration efforts over the past five years in Uzbekistan. The initial phase of this development is anticipated to involve investments of $214 million over three years, yielding an annual production of approximately 500 tons of uranium.
Established in 2019, Nurlikum Mining was formed as a joint venture, with Orano holding a 51% stake. The company focuses on promising uranium deposits in three regions. In November 2022, agreements were made to further expand uranium mining activities, with intentions to follow the French model for a comprehensive nuclear fuel value chain.
Minister of Mining and Geology, Bobir Islamov, highlighted Orano’s intention to invest up to $500 million in uranium mining and processing, alongside geological explorations in additional locations. As the world’s fifth-largest uranium producer, Navoiyuran plays a pivotal role in maintaining stable nuclear fuel supplies, contributing significantly to Uzbekistan’s economy as a leading taxpayer.
In conclusion, the recent agreement between Navoiyuran and Orano marks a significant advancement in Uzbekistan’s uranium industry, leveraging international collaboration and investment. The Yuzhny Jengeldy project is poised to enhance local economies through job creation and adherence to environmental standards while ensuring a robust supply of uranium. This partnership not only diversifies uranium sources for global markets but also strengthens Uzbekistan’s position within the nuclear fuel sector.
Original Source: www.gazeta.uz
