During the parliamentary session on January 10, lawmakers gave their final approval to two significant legislative amendments and an investment agreement crucial for Mongolia’s economic future. The draft amendments to the Law on the National Wealth Fund and the Law on Minerals were both approved, with 81.4 percent of all members voting in favor. 

In addition, 79.3 percent of the members also backed the draft resolution concerning an Investment Agreement between the Government of Mongolia and Orano Mining SAS, the investor in the Mongolian-French joint venture Badrakh Energy LLC. This agreement pertains to the development of Zuuvch-Ovoo and Dulaan-Uul uranium deposits, marking a significant step forward in Mongolia’s mining sector.

Speaker of Parliament D.Amarbayasgalan highlighted the significance of the agreement, noting that the project had first entered Mongolia in 1997 and began operations several years later. He pointed out that, after receiving exploration and exploitation licenses in 2003 and 2015 respectively, the joint venture was established in 2017, culminating in this landmark parliamentary approval 28 years later.

“This project has great geostrategic, geopolitical and geoeconomic importance for our country,” he said, emphasizing that the completion of the agreement marks the beginning of a new phase for Mongolia’s mining industry.

The Zuuvch-Ovoo and Dulaan-Uul uranium deposits are among 14 mega projects under the government’s action plan for 2024 through 2028, which are expected to play a major role in national development and infrastructure growth. These deposits are seen as crucial to Mongolia’s long-term economic strategy and are expected to generate substantial economic and social benefits.

Chief Cabinet Secretary N.Uchral introduced the bill to parliament, noting that its successful implementation would not only benefit Mongolia’s economy and society directly but also set an important precedent for future investment agreements in the mining and mineral resources sectors. The successful approval of the Badrakh Energy investment agreement and the legal amendments signals a positive direction for foreign investment in Mongolia’s key industries, particularly in the mining sector. The agreement is expected to set a benchmark for similar future projects, potentially attracting more international investors looking to tap into Mongolia’s rich natural resources.