ZUUVCH-OVOO PROJECT

FROM MINING TO COMPLETE MOUNTAIN MINING FACILITIES

Since 1996, Orano Group’s exploration subsidiary company, Cogegobi, has been continuously carrying out geological reconnaissance and exploration work in the southeastern provinces of Mongolia: Dornogovi and Sukhbaatar.

Major achievements of exploration include discovery of the Dulaan Uul deposit in 2007 and the world-class Zuuvch Ovoo deposit in 2010, which significantly increased Mongolia’s overall uranium resources. These works have been conducted in accordance with the law on minerals adopted by the Parliament of Mongolia and international safety, security and environmental standards.

1996-1997

Creation of Orano Group exploration subsidiary of Kozhegov LLC

2002

 Discovery of Dulaan Uul deposit

2009

Discovery of Zuuvch Ovoo deposit

2011

Successful In Situ Recovery (ISR) test at Dulaan Uul site

2013

Registration of Zuuvch Ovoo resources, estimated at 54,640 metric tons;

AREVA Mongol and Mon-Atom sign Shareholders’ Agreement for the governance of the joint venture, AREVA Mines

2015

Approval of Feasibility Study of Dulaan Uul and Zuuvch Ovoo uranium deposits

2016

Granting of 3 mining licenses for Dulaan Uul and Zuuvch Ovoo uranium deposits

2017

 Mon-Atom receives a share in the capital of the joint venture

2018

AREVA MINES LLC becomes Badrakh Energy LLC;

Commissioning of the Zuuvch Ovoo Pilot test facilities  

2021-2022

Successful completion of the Zuuvch Ovoo pilot test

2023-2024

Update of the Detailed Environmental Impact Study and Feasibility Study 

2024-2028

Design  and development of  mine infrastructure and facilities

2028

Start of industrial phase of Zuuvch Ovoo project 

Zuuvch Ovoo pilot test (2021-2022)

Badrakh Energy successfully completed the pilot test for uranium extraction and processing from the Zuuvch Ovoo deposit from July 2021 to December 2022.

OBJECTIVES: 

The pilot installation was set up to determine the mining method best suited to the deposit. On-site testing is also part of the legal requirement in Mongolia. The objectives of the Zuuvch Ovoo pilot test consisted of:

  • Providing data for the update of the feasibility study and confirming technical and economic parameters
  • Confirming the expected very low environmental impact of the ISR mining method
  • Involving the local communities in the monitoring of the test, thus contributing to the social acceptance of the project

 

Zuuvch Ovoo pilot plant operated during the 18 months of  test without any safety or environmental incidents.

All technical aspects (eg. uranium recovery rate, reagent consumption, concentrate purity) of uranium recovery and processing have been tested. Badrakh Energy has successfully produced about 10 tons of natural uranium.The pilot plant teams, mainly consisting of local recruits from the surrounding communities, have successfully demonstrated their ability to safely operate the ISR technology. Nearly 100% of the staff operating the pilot were Mongolian nationals (among 52 employees working on site, only two were foreign experts, and 50% of them were local youth).

During the transition phase between the end of pilot operation and the start of project investment, particular attention is being paid to supporting pilot employees and providing training and education opportunities.

Groundwater and aquifer in the Zuuvch Ovoo area

ENVIRONMENTAL ANALYSIS BEFORE, DURING AND AFTER ZUUVCH OVOO PILOT TEST

Advanced exploration began in 2011 for Zuuvch Ovoo. This involves detailed delineation of the mineralization in order to measure the quantity, grade, and geometry of the uranium ore bodies, as well as conducting hydro-geological studies and examining the geological environment. 

Water is a vital natural resource. Understanding where it is and how it moves under the ground is essential in protecting this resource. By using geological maps and taking samples of underground and surface water for analysis, hydrogeologists are building a detailed picture of how water flows underground.

In 2021, the working group of the Academy of Sciences worked to determine the impact of in-situ leaching technology on the environment and the natural conditions, which were to be used in the pilot test by  Badrakh Energy in Ulaanbadrakh soum in Dornogovi province.  

 

In 2023, the working group of the Academy of Sciences came to the project site after the completion of the pilot test, conducted the same detailed study, and made a presentation to the local administration and citizens.

2

Production trial to mine uranium using 2 grids

30+

Over 30 monitoring wells will be operational during the 2-year trial period.

200+

The process takes 300 days to produce a product with a 75% content.

2

The trial will continue for 2 years and will be exported in the next phase.

Supervision and environmental monitoring

Project benefits (Economic Benefits from the Project)

The mining project of Badrakh Energy is a large investment project for Mongolia and it creates a new mining industry.

The project will be fully financed by Orano group and the majority of the benefits of the project will come to Mongolian State without any risk attached to financing or operation management.

More than 2 billion USD will be paid as tax income during the project at national and local level.

It will generate significant purchase and business opportunities in Mongolia at national and local level.

in the project will contribute to the development of local infrastructure.

800 direct jobs will be created once mining starts, with the development of a highly skilled workforce & numerous training programs.

Controlling and monitoring

The test parameters will be regularly checked automatically by a Control Command System, which will also perform hydraulic and chemical analyses. Uranium, iron, acid concentration, pH, salinity and other characteristics will be analyzed daily on site in a certified laboratory set up specifically to monitor the process.

355 monitoring wells or piezometers are installed both around and inside the well field areas and above and below the deposit to measure the hydrodynamics and quality of the groundwater.

A systematic water sampling program will be conducted before, during and after the test to assess any impact the process may have had on the environment and particularly on groundwater quality.

All the environmental impact results of the ISR test were sent to the relevant Mongolian administrative bodies, along with the post-test environmental impact assessment.

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