During French President Emmanuel Macron’s visit to Mongolia, access to rare earth minerals and Russia’s war against Ukraine were top of the agenda. However, a joint declaration signed during the summit highlighted France’s attempts to find an alternative uranium source for its nuclear reactors.
Currently, France heavily relies on uranium sourced in West Africa, but this supply chain is under threat due to social and political unrest in the region. The agreement signifies joint efforts to strengthen political, economic, commercial, and defence cooperation. Furthermore, both countries will collaborate in the energy sector, as outlined in Article 12 of the declaration. Negotiations over investment in the “joint Zuuvch-Ovoo project” will be “accelerated” with an aim to conclude them in autumn.
This project is specifically about the uranium mining project run by Badrakh Energy, a company jointly run by France’s Orano Group (formerly Areva) and Mongolia’s Monatom. The low position of the article concerning nuclear cooperation within the joint statement does not reflect its crucial importance. France possesses 18 nuclear power plants with 56 reactors, which is set to expand substantially over the coming years alongside the need for uranium.
In response to the need to cut its reliance on foreign energy, Macron introduced plans to spend Ꞓ51.7 billion to build another 14 new nuclear reactors over a 28-year period in February 2022. These new reactors were necessary due to Russia’s invasion of Ukraine and the energy supply problems that trailed it. Figures published by the French Ministry of Ecological Transition show that 40% of energy consumption in France comes from nuclear, with petrol at 28.1%, natural gas at 15.8%, and alternative sources, such as wind and hydropower, at 12.9%. EDF’s figures show that nuclear power has a 70.6% share of the electricity market, while 11.2% comes from hydropower, 6.3% from wind power, and 2.2% from solar power.
France’s dependency on uranium will increase substantially in the coming years, and to meet its current nuclear fuel demands, it needs between 8,000 and 9,000 tons of uranium annually. According to the “Uranium 2022 Resources, Production and Demand” report jointly published by the IAEA and the OECD’s NEA, about two-thirds of the uranium production in the world comes from Kazakhstan (39.4%), Canada (22%), and Australia (10%). France does not have uranium deposits, so it has to rely on imports.
An article published on 23 April in French daily, Le Monde, indicated that Orano’s giant uranium mine in Niger faces multiple threats, including jihadist attacks. According to the newspaper, Uranium deposits have become “a key component of France’s energy independence strategy”, but that is changing. Of the two mines that were operated since 1971 in Niger, only one in Somaïr remains. The Akouta Mining Company (Cominak) closed in March 2021 after reserves were depleted.
Orano still seeks to maintain a foothold in Niger, signing a general partnership agreement with the government of Niger on 4 May. According to Nicolas Maes, CEO of Orano Mining, the agreement confirms the major role of Niger in the global uranium industry. However, the unrest in neighbouring Burkina Faso and Mali, which also provides uranium has forced France to leave. French troops are still present in Niger, co-patrolling the border area with the Nigerian army to monitor activities in neighbouring Mali and Burkina Faso as the French forces there were wound down.
French-Mongolian cooperation on uranium is not new. Areva Mines have been exploring the Dornogovi province since 1997. The Zoovch Ovoo deposit has resources of over 54,000 tons of Uranium, according to the World Nuclear Association. In 2015, the Badrakh Energy joint venture was created, controlled by Orano’s subsidiary Areva Mongol (66%) and Erdenes Mongol, through its subsidiary, Monatom, holding the remaining 34%. Erdenes Mongol claims that a total investment of Ꞓ1 billion over 22 years with expected income of Ꞓ5.5 billion. A flyer by Orano states that the two-year pilot deal with new mining processes launched in 2021 will generate 20 tons of uranium.
France’s increasing hunger for nuclear reactors raises concern for the country as it moves to reduce its reliance on foreign energy sources. Still, the agreement affirms France’s attempts to diversify its uranium supply. With immense unrest in the West African region and growing instability, alternatives have become indispensable. Macron’s visit to Mongolia will indeed help secure France’s energy independence.
