Access to rare earth minerals and Russia’s war against Ukraine topped the agenda on French President Emmanuel Macron’s historic visit to Mongolia. But the joint declaration signed during the meeting also underlines France's attempts to find an alternative uranium source for its nuclear reactors.
As it stands, France depends to a large extent on uranium sourced in West Africa. That supply chain, however, is under threat because of social and political unrest in the region.
The 18-article joint declaration, which trumpets "strengthening political, economic, commercial and defence cooperation", also notes that both countries will also cooperate in the energy sector.
Dig down into the declaration, however, and Article 12 notes that as part of this cooperation, negotiations over investment in the "joint Zuuvch-Ovoo project" will be "accelerated" with the aim of concluding them in the autumn.
[Featured] #Energy: #Macron seeks to support #Mongolia in diversification of trade and #Decrabonisation - Joint venture between French and Mongolian #NuclearPower companies demonstrate #France's interest in #Uranium reserves, by @theophane_h | Euractiv https://t.co/RPFA134mns
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It cites, in particular, the uranium mining project run by Badrakh Energy, a company jointly run by France's Orano Group (formerly Areva) and Mongolia's Monatom.
Hasty negotiations
The relatively low position of the article addressing nuclear cooperation within the French-Mongolian joint statement belies its importance.
France currently has 18 nuclear power plants with 56 reactors. That number is set to expand substantially in the coming years, as will the need for uranium.
In response to the need to slash fossil fuel emissions and cut its reliance on foreign energy, Macron announced, in February 2022, that France would spend €51.7 billion to build another 14 new nuclear reactors over a 28 year period.
The need for new reactors was underlined by Russia's invasion of Ukraine and the energy suppy problems that arose from that.
France's uranium
According to figures published by the French Ministry of Ecological Transition in France, 40 percent of energy consumption comes from nuclear, 28.1 percent from petrol, 15.8 percent from natural gas, and 12.9 percent from alternative sources such as wind and hydropower.
French electricity company EDF's figures show that nuclear generates most of the country's electricity supply: 70.6 percent, against hydropower's 11.2 percent, windpower 6.3 and solar 2.2 percent.
The result is that France's dependency on uranium is set to grow substantially in the coming years.
To satisfy its current nuclear fuel demands, France needs between 8,000 and 9,000 tons of uranium per year, according to the portal Connaissance des Énergies.
The 563 page report "Uranium 2022 Resources, Production and Demand", jointly published by the IAEA and the OECD's Nuclear Energy Agency (NEA), adds that about two-thirds of the world uranium production comes from Kazakhstan (39.4 percent), Canada (22 percent) and Australia (10 percent.) Other producers include Niger, Namibia, Russia, Uzbekistan and Mongolia.
As France does not have its own uranium deposits, it has to rely on imports.
On 23 April, French Daily Le Monde wrote that Orano's giant uranium mine in Niger faces multiple threats, including jihadist attacks.
In fact, Uranium deposits have become "a key component of France's energy independence strategy," according to the paper. But the tide is turning.
Of the two mines opened in 1971 in Niger, only the one in Somaïr remains. The Akouta Mining Company (Cominak) closed in March 2021 after reserves were depleted.
However the biggest problem is the volatility of the region. France was forced to leave neighbouring Burkina Faso and Mali, which also provides uranium.
French troops
Orano wants to maintain a foothold in Niger. On 4 May, the company signed a general partnership agreement with Niamey. According to Nicolas Maes, CEO of Orano Mining, this confirms the major role of Niger in the global uranium industry. But the unrest on its doorstep is starting to take its toll.
For now, French troops are still present in Niger, co-patrolling the border region with the Nigerien army as part of "opération Almahaou" to monitor activities in neighbouring Mali and Burkina Faso since French forces withdrew.
Meanwhile, in Niger itself, the Imouraren mine, presented as the "mine of the century" by Orano and snatched from the Chinese in 2009, is still "on hold pending feasibility studies of new mining techniques".
A more likely reason is the human and investment risk, which may be too high.
According to an infograph by Orano published in 2021, France has been gradually moving away from Niger for its uranium. Most of the "yellow cake" now comes from Kazakhstan (2,840 tons), with Niger's Somaïr (1,996 tons) still a solid second. The Cigar lake mine at McLean Lake Mill in Canada also produces 1,788 tons.
However, with the increasing instability in the region, alternatives are indispensable.
The role of Mongolia
French-Mongolian cooperation on uranium is not new. Areva Mines has been involved in exploring the Dornogovi province since 1997. The World Nuclear Association says that the Zoovch Ovoo deposit has resources of over 54,000 tons of uranium.
In 2015, nuclear cooperation between France and Mongolia took a step forward with the creation of Badrakh Energy, a joint venture that is controlled by Orano's subsidiary Areva Mongol (66 percent) while Erdenes Mongol, through its subsidiary Monatom, holds 34 percent.
Erdenes Mongol, states that total investment is to be €1bn over 22 years, with expected income of €5.5bn. A flyer by Orano says that a two-year pilot deal with new mining processes that was launched in 2021 will generate 20 tons of uranium.
Macron now hopes to speed up the paperwork on this so that full production could start in the autumn, easing the pressure on France's increasingly hungry nuclear reactors.
