France’s nuclear fuel cycle company Orano has signed a $1.6bn (€1.5bn) investment agreement for the development and operation of the Zuuvch-Ovoo uranium mine in Mongolia’s southeastern Dornogovi province.

The agreement, signed in the Mongolian capital Ulaanbaatar on 17 January, has been ratified by the government after being put before the Mongolian parliament. Orano said it marks 27 years of “presence and partnership” in Mongolia.

Under the terms of the agreement, Badrakh Energy, a joint venture between Orano and Mongolia’s state-owned MonAtom Group, will be responsible for the industrial operation of the major Zuuvch-Ovoo and Dulaan Uul/Umnut deposits, which have estimated uranium resources of close to 90,000 tonnes of uranium (tU).

With a 30-year estimated lifespan, the project represents an initial investment of around $500m before the deposit comes on stream, and a total of $1.6bn over the mine's lifetime, Orano said.