MARC MELEARD: THE START OF THE ZUUVCH OVOO PROJECT WILL COME AT A TIME WHEN PRODUCTION FROM EXISTING URANIUM MINES WILL BE INSUFFICIENT TO MEET THE DEMAND FOR NUCLEAR ENERGY.

Mongolia negotiated an investment agreement with Orano Mining, France, to implement its uranium mining project. In this context, we spoke with Marc Meleard, General Director of Badrakh Energy, the joint venture between the Government of Mongolia and Orano Mining.

He explained that the Zuuvch Ovoo project comes at the right time when global energy consumption is on the rise and the role of nuclear energy is growing. He emphasized the importance of the investment agreement, which was concluded in January 2025.

The United Nations General Assembly held last autumn addressed the issue of green energy and the energy transition. How do you see the trends in the energy sector?

All conferences related to climate change show that it is time to pay serious attention to global warming. In particular, there is a consensus that we must focus on the energy sector, which accounts for three-quarters of carbon dioxide (CO₂) emissions, the main driver of global warming.

For this reason, all attention is on green or decarbonized energy sources that emit minimal CO₂ during energy production. These include renewable energies (notably hydropower and geothermal) as well as nuclear energy.

Energy produced from these green or decarbonized sources emits 80 times less greenhouse gases compared to fossil fuels such as coal or oil. Given that there is an 80-fold difference in the amount of greenhouse gas emissions, all climate-related conferences and discussions highlight the need to reduce fossil fuel use and maximize nuclear and renewable energy production. This is a key action in the energy transition.

What is the main challenge of the energy transition?

Two major challenges are typically mentioned. First, energy consumption continues to grow in tandem with the world's population. Second, there is a global effort to reduce CO₂ high-emission energy sources and replace them with decarbonized energy. In other words, producing enough green or decarbonized energy to satisfy ever-growing demand—and simultaneously replacing fossil fuels—is a significant challenge.

In fact, renewable and nuclear energy production is expected to triple over the next 25 years.

We see rapid progress toward this goal in the mining sector, for example, through the growing use of electric drills instead of diesel or gasoline drills, and the introduction of large electric trucks and equipment. This substitution of fossil fuels with electricity is another crucial component of the energy transition.

The same logic applies to electric cars. Their contribution to fighting climate change depends on the source of the electricity used. If it comes from decarbonized (renewable or nuclear) sources, then the main goal of reducing emissions is achieved. But if that electricity is produced from coal, it no longer constitutes a true energy transition.

What changes are taking place in the nuclear energy sector as a result of these trends? Why has nuclear energy become an important part of the energy transition?

Nuclear energy has become essential for the energy transition, and many countries around the world have decided to use it to generate electricity. These countries can be grouped into three categories:

1. Countries already producing and using nuclear energy that have decided to increase their nuclear capacity (e.g., France, the United States, China, and Russia).
2. Countries that have nuclear power but initially decided to reduce or stop it; many of them are now planning to restart their reactors or keep them running.
3. Countries that have never used nuclear energy but plan to do so in the future. A recent example is Kazakhstan—the world's largest producer of natural uranium—which decided to develop nuclear power after holding a referendum on October 6, 2024. The result showed that 72% of Kazakhs voted for a nuclear power plant.

The year 2050 will be a significant milestone for humanity, as many countries aim for net-zero emissions by then. Achieving this requires tripling today's combined renewable and nuclear energy production. Globally, 400 new nuclear power plants are planned for construction over the next 25 years, with around half (about 200) expected to be built in China.

It is also crucial to have an activatable energy source—one that can be ramped up quickly on demand, for example, in winter for heating. While renewable energy should be used as much as possible, when renewables are not available, a CO₂ low-emission, on-demand energy source must step in: nuclear power perfectly fits this requirement.

To minimize CO₂ emissions overall, combining nuclear and renewable energy creates an ideal energy mix. Accordingly, countries embarking on civil nuclear projects also invest in renewables. In other words, nuclear energy does not compete with renewable energy; they complement each other.

You mentioned that meeting growing demand is linked to a rising need for nuclear power and, by extension, uranium. Are the world's uranium resources sufficient? How do other countries carry out exploration and production ahead of starting new projects like ours?

If we compare the known global uranium reserves to what is consumed annually, these reserves could theoretically last 100 years. However, uranium is a geological resource, meaning it must be extracted to fuel nuclear reactors. As nuclear energy production expands, more natural uranium is needed to make nuclear fuel. In other words, although geological reserves are sufficient, current extraction rates will not cover the future demand for nuclear fuel. Hence, the need to develop new natural uranium mines.

From 2030 onward, existing mines will not be able to meet the full demand for nuclear fuel. Globally, there is a push to intensify exploration of new uranium deposits. The Orano group also plans to resume exploration campaigns in Mongolia to find new deposits and support these energy transition needs.

So, when Mongolia's Zuuvch Ovoo uranium mining project starts, will production coincide with the beginning of the shortage you just described?

Yes. The industrial mining development of Zuuvch Ovoo will start at the right time. According to our current plan, main operations should begin by the end of 2028. We do not want to slow down or waste time. That is why, even before concluding the Investment Agreement, the Orano group launched significant preliminary studies last year to pave the way for this major production phase.

As for the development and construction work—which requires far more financial investment than the studies—this will begin in the second half of 2025. We have already started recruiting new staff to accompany this construction phase, along with the training programs we launched back in 2024 with ISR seminars at the National University of Mongolia and the Mongolian University of Science and Technology. This training, being part of the MoU signed in 2023, will continue this year as well.

Mongolia aims to reduce greenhouse gas emissions by 22.7% by 2030. Is this goal achievable? What will the energy sector's contribution be, including the Zuuvch Ovoo project?

Mongolia is one of the countries in the world with the greatest potential for renewable energy resources. It can certainly capitalize on this potential, and indeed, we have seen increasing interest and investment in renewables over recent years. This is very positive.

However, renewables alone may not be sufficient because they depend on weather conditions. Whenever renewables are not available, another on-demand energy source is needed. In Mongolia, that fallback is currently coal. Yet, because coal-related projects struggle to secure financing in light of climate change constraints, nuclear energy could become an attractive alternative.

When a country considers building a nuclear power plant, public acceptance is crucial and must come first. Even then, constructing a plant can take around 10 years from decision to completion. During its visit to Mongolia, RosAtom proposed building a small modular reactor (SMR). Russia is not alone—many other countries also propose small reactors. In any case, if Mongolia builds a nuclear reactor, it will bring many benefits, including a reduction in coal-related emissions and energy independence, especially given the uranium produced by Badrakh Energy.