badrakh energy
PROFILE
Badrakh Energy is a responsible mining company committed to the development of the world-class Zuuvch Ovoo uranium deposit in the Dornogobi region. The Zuuvch Ovoo project is the most advanced uranium mining development project in Mongolia. Badrakh Energy LLC adheres to best-practice standards and is proud of its excellent environment, health and safety record. The company has 86 employees, 96% of whom are from Mongolia.
Key dates
2013
Resources classification of the Zuuvch Ovoo deposit
2013
Signature of Shareholder Agreement of AREVA Mines LLC
2015
Approval of the Zuuvch Ovoo Project Feasibility Study
2016
Granting of 3 mining licenses
2017
Mon-Atom takes 34% share of capital
2018
AREVA Mines LLC becomes Badrakh Energy
2018
Zuuvch Ovoo pilot test site constructed
2020
Increase of the proven reserves of the Zuuvch-Ovoo deposit to 93,291 tons of uranium
2021
Badrakh Energy holds three mining licenses for the Zuuvch Ovoo and Dulaan Uul uranium deposits (the Dulaan Uul deposit covers the Dulaan Uul and Umnut areas) in the Dornogobi Province.
Registered resources for Zuuvch Ovoo (93,291 tU) and Dulaan Uul (6,260 tU) represent more than 50% of the official resources of Mongolia.
Badrakh Energy LLC is conducting mining development operations at Zuuvch Ovoo, including detailed feasibility work and an In-Situ Recovery (ISR) Pilot test.
OUR NEWSLETTERS:
Badrakh Energy Newsletter – May 2021
SHAREHOLDERS OF BADRAKH ENERGY LLC
According to the shareholder’s agreement dated October 2013, the shareholders of Badrakh Energy LLC are:
- AREVA Mongol LLC* with a participating interest of 66%,
- Mon-Atom LLC, on behalf of the Government of Mongolia, with a participating interest of 34%.
Orano, France
As a recognized international operator in the field of nuclear materials, Orano delivers solutions to address present and future global energy and health challenges. Its expertise and mastery of cutting-edge technologies enable Orano to offer its customers high value-added products and services throughout the entire fuel cycle. Every day, the Orano group’s 16,500 employees draw on their skills, unwavering dedication to safety and constant quest for innovation, with the commitment to develop know-how in the transformation and control of nuclear materials, for the climate and for a healthy and resource-efficient world, now and tomorrow.
Orano at a glance
Mon-Atom, Mongolia
The parliament of Mongolia adopted the radioactive minerals and nuclear energy policy and the Law on Nuclear Energy in 2009. The state-owned limited liability company MON-ATOM was established under act no. 45 of the government resolution in 2009 pursuant to the Government Action Plan determining “to increase the proven reserves of uranium and to collaborate with interested strategic investors regarding the exploitation”.
The parliament of Mongolia adopted the radioactive minerals and nuclear energy policy and the Law on Nuclear Energy in 2009. The state-owned limited liability company MON-ATOM was established under act no. 45 of the government resolution in 2009 pursuant to the Government Action Plan determining “to increase the proven reserves of uranium and to collaborate with interested strategic investors regarding the exploitation”.
MON-ATOM works to perform the survey, exploration and reconnaissance of uranium and other types of radioactive minerals on the territory of Mongolia, to identify the reserves; to produce the feasibility studies for their extraction and processing, to participate in the production phase as the shareholder, to impose supervision, to prepare the highly professional labor force and material basis of the industry, to implement the responsible mining principles, to ensure the safety in the production, to determine the strategic policy of the uranium mining and to represent the government involvement in the joint projects.
In June 2017, according to the Shareholders’ agreement, 34% shares of Badrakh Energy LLC were transferred to Mon-Atom LLC without recourse to sovereign financing. Mon-Atom is empowered by the Mongolian government to execute its share in the company.
ORANO'S COMMITMENTS
Orano’s aim is to achieve profitable growth in a socially and environmentally responsible manner. Its approach has a strong ethical foundation and takes into account the concerns of stakeholders in all countries where the group and its subsidiaries operate.
This approach is based on Orano’s Code of Ethics.
Since 2003, by lending its support to the Extractive Industries Transparency Initiative (EITI) – a coalition to promote financial transparency and work against corruption – Orano has demonstrated its commitment to greater transparency in payments made to countries in relation to the management of mining resources.
Any revenue that governments receive from Orano (taxes, royalties or fees) is stated in reports that are verified by independent experts.
The members of the EITI board classified Mongolia a “compliant country” in December 2010, meaning that it meets the EITI standard for financial transparency.
Since 2011, Orano is a member of the international Council of Mining and Metals, an international organization dedicated to enabling a safe, fair, and sustainable mining and metals industry. Orano applies the 10 principles of the ICMM sustainable development framework within its mining culture and operational activities, setting up transparent and accountable reporting practices. These practices are self-assessed every two years.
COMPANY GOVERNANCE
Operation of the Board of Directors
The activation of the operation of Badrakh Energy LLC took place in June 2017 with the first meeting of the Board of Directors, whose primary function is to ensure operational consistency in company activities. Mongolian Company law requires a separation between the functions of Chairman of the Board of Directors and Chief Executive Officer, which has been fulfilled since the establishment of the Company.
БThe organization, operation and prerogatives of the Board of Directors are set by the charter of Badrakh Energy LLC. The Board of Directors meets at least twice a year. It decides how the Company orients its activities and ensures their implementation.
The Board of Directors comprises 9 directors:
- 6 members are nominated by and represent AREVA Mongol LLC(subsidiary of Orano Mining)
- 3 directors are nominated by and represent Mon-Atom LLC.
The Board of Directors has Operation and Audit Committees. The Audit Committee is chaired by the representatives of the shareholders alternatively elected each year. The Committees meet at least four times per year to discuss matters related to the operation and financial operations of the company and raise them for discussion at the Board of Directors, if necessary, for decisions.
Management Committee
The Company CEO chairs the CODIR, or Management Committee, which is made up of directors from the operational departments (Pilot test project, Health, Safety and Environment, Corporate Social Responsibility, Communication) and the functional departments (Human Resources, Finance and Supply, Legal, Corporate Affairs) who are in charge of the activities of the Company on a day-to-day basis. The CODIR meets regularly to discuss and decide on Company operations.
