The French conglomerate AREVA is planning to mine uranium in Ulaanbadrakh soum of Dornogobi aimag.
The company has been working on the project since December 2010 and plans to build a small uranium exploitation factory within two or three years. It’s projected that the factory would process uranium to yellow powder by 2017 and would export the yellow powder.
The governments of Mongolia and Russia signed an agreement to establish a uranium-mining company called Dornod Uran LLC in December 2010, and Russian President D.Medvedev pledged to cooperate with Mongolia in the nuclear energy sector and to exploit uranium in Mongolia during his official visit to the country in 2009.
But Dornod Uran has not been established yet because a Canadian mining company called Khan Resource has complained to an international arbitration panel. Khan Resource is seeking compensation of USD 258 million from the Mongolian government and Mon-Atom LLC. With the establishment of Dornod Uran delayed, AREVA could be exporting yellow powder before the Russian-backed company.