Orano Shifts Focus to Uzbekistan’s Uranium Sector After Niger Asset Loss

Orano Mining has entered a trilateral agreement with Uzbekistan’s Navoiuran and Japan’s ITOCHU to commence uranium extraction at the Jongeldy deposit, investing $214 million over three years. The agreement follows Orano’s loss of uranium assets in Niger, marking a strategic shift towards Uzbekistan. This initiative aims to increase uranium output and bolster Uzbekistan’s position in the global uranium market while supporting international investment in the region.

France’s Orano Mining has signed a trilateral agreement with Uzbekistan’s Navoiuran and Japan’s ITOCHU to initiate uranium extraction at the Jongeldy deposit. Signed on March 10, 2025, in Paris, this agreement signifies a notable advancement in Uzbekistan’s uranium sector and includes plans for enhanced geological exploration in joint projects. Uzbekistan, a top five global uranium producer, stands to benefit from partnerships with renowned international firms such as Orano and ITOCHU.

The preliminary phase of developing the Jongeldy deposit will involve an investment of approximately $214 million over a three-year period, primarily sourced from foreign companies, while Navoiuran will act as the project’s operator. This arrangement is designed to lower production costs and enhance the integration of mining activities within existing company infrastructure. Projected uranium production is expected to average 500 tonnes annually, with potential peak output at South Jongeldy reaching up to 700 tonnes per year.

To facilitate the project, a joint venture called Nurlikum Mining will be created, with ITOCHU acquiring a stake, highlighting the international collaboration and investment appeal of the project. This initiative follows Orano’s recent setbacks in Niger, where changes in leadership have eliminated prospects for regaining mining rights, prompting the company to pivot its focus towards Uzbekistan, Kazakhstan, Mongolia, Namibia, and Canada for production recovery.

According to the World Nuclear Association, Niger was the seventh-largest natural uranium producer globally in 2022, contributing 3.47% to global output. Orano previously extracted approximately 1,200 tonnes from Niger, while relying on Canada for 5,000 tonnes and the remainder from Kazakhstan. The loss of assets in Niger has shifted Orano’s priorities towards projects in Central Asia.

The Jongeldy deposit development aligns with a broader collaboration initiative between Navoiuran and Orano, which began with a strategic framework agreement signed with the Uzbek government in 2022. In November 2023, President Shavkat Mirziyoyev and Orano Chairwoman Claude Imauven discussed expanding initiatives in uranium exploration and extraction.

In addition to the updates from Uzbekistan, Orano Mining is also expanding its operations internationally. In December 2024, it reached a preliminary agreement to develop the Zoovch-Ovoo deposit in Mongolia, and in February 2025, CEO Nicolas Maes indicated intentions to secure a deal for a small-scale mining operation in Uzbekistan.

The trilateral agreement between Orano Mining, Navoiuran, and ITOCHU is a significant development for Uzbekistan’s uranium industry, aimed at enhancing production capabilities and foreign investment. Following the loss of mining assets in Niger, Orano is strategically diversifying its operations in Central Asia, and the Jongeldy project emphasizes the importance of international cooperation in boosting the country’s stature in the global uranium market. Moving forward, further investments and collaborative efforts are anticipated as Uzbekistan emerges as a critical partner for uranium production.

Original Source: news.az