Mongolia's Uranium Strategy: A Shift Towards Royalties

Mongolia's uranium sector, dormant for decades, is stirring to life as the country readies a comprehensive strategy to exploit its tenth-largest global reserves. The government, under the guidance of Cabinet Chief Secretary Nyam-Osoryn Uchral, aims to launch the uranium project alongside France’s Orano Group.

By moving from a 34% direct stake in their joint venture, “Badrakh Energy,” to a royalty-based system with potentially only a 10% preferential shareholding, Mongolia intends to secure more predictable revenue without the headaches of direct involvement. This pivot reflects a broader lesson from Mongolia’s challenging experience with Rio Tinto’s Oyu Tolgoi mine, the country’s largest mining project, where managing direct investment proved complex and contentious.

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