French company Orano has announced its plans to invest up to $500 mn in uranium production in Uzbekistan. The investment will involve geological exploration activities in two areas located in the Navoi region. Minister of Mining and Geology Bobir Islamov revealed this development during the Verona Eurasian Economic Forum.
Under the strategic partnership agreement signed between Uzbekistan and Orano, the French company is currently conducting geological exploration, and a preliminary feasibility study for the project is expected to be completed by the end of this year.
Islamov explained that the strategic agreement designates two additional areas in the Tamdyn district of the Navoi region for exploration by Orano. The final investment amount of $500 mn has been fixed in the agreement, although the ultimate decision will depend on the outcome of the feasibility study. The Minister expressed positive progress in the ongoing exploration activities.
Highlighting the existing market demand for uranium production, Islamov emphasized that as the production of nuclear fuel increases in Uzbekistan, decisions on exports will be based on prevailing price conditions. The official stated:
Regardless of the partner we collaborate with for uranium, we are tied to global prices. If prices rise, our supply costs are also affected, as everything is linked to formulas.
Islamov further reported increased uranium exports in all directions this year, emphasizing diversifying supply sources.
The announcement of Orano's involvement in new uranium exploration and production projects in Uzbekistan coincided with the recent visit of French President Emmanuel Macron. This visit was seen as an opportunity to discuss the expansion of uranium supplies. France seeks to diversify its nuclear fuel sources, viewing Central Asia as a potential alternative to Russian supplies.
With Orano's significant investment, Uzbekistan aims to strengthen its position in the global uranium market and capitalize on its rich uranium reserves.
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