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Mongolia: rich in mineral resources and potential for cooperation

Mongolia is located in Northeast Asia with a population of about 3.5 million people and an area of more than 1.56 million square kilometers. Despite its relatively small population, this state has vast natural resources, including large reserves of uranium, gold, copper, and other rare earth metals.

According to the World Nuclear Association, Mongolia ranks 12th in the world in terms of uranium reserves, its confirmed resources are about 60.5 thousand tons of uranium, and geological studies, in turn, show the potential of up to 1.32 million tons of uranium. Gold and copper also play an essential role in the country’s economy. Mongolia has one of the leading copper exports in the world, its gold mining industry holds a significant share in exports, and as of 2019 accounts for 90 percent of total mineral production.

Mongolia already has large international mining companies. The French company Orano Mining, one of the world leaders in the uranium industry, is actively searching and developing deposits such as Zuuvch-Ovoo and Dulan-Uul, with a total investment portfolio of $1.6 billion. The Russian company Rosatom Nedra also plans to create a joint venture to develop uranium deposits, which have a long history of cooperation with Mongolia. In addition, exploration and mining companies in China, Kazakhstan, and the Czech Republic operate in this country. Despite the activity of foreign players, Mongolia’s potential remains untapped, which opens up broad prospects for new cooperation.

Uzbekistan: leading country in uranium and rare earth metals mining

With many years of experience in the mining industry, Uzbekistan has proven itself to be one of the world leaders in uranium, gold, and copper mining. According to the World Nuclear Association, in 2022, Uzbekistan produced about 3,300 tons of uranium, which provided about 7 percent of world production and made it the fifth largest in the world in terms of production. The country's approved uranium reserves amount to more than 130 thousand tons, and its ambitious goal is to increase uranium production by 3 times by 2030.

The leading participant in the uranium industry of Uzbekistan is the state-owned enterprise Navaiuran. Navoiuran specializes in uranium mining and processing using advanced in-situ leaching (ISL) technologies, allowing efficient uranium extraction from low-level ores. The company actively cooperates with such international partners of France as Orano, with whom in 2019 a joint venture Nurlikum Mining was created to develop the Jengeldi field. In addition, agreements were signed with the China National Uranium Corporation (CNUC) and the China General Nuclear Energy Corporation (CGNPC) for the exploration and joint development of uranium territories.

Uzbekistan also has outstanding results in the gold and copper mining fields. Navoi Mining and Metallurgical Company (NMMC), originally part of Navoiuran, is Central Asia’s largest gold mining enterprise and makes up a significant part of the country’s exports. Almalyk Mining and Metallurgical Complex JSC (AMMC) specializes in extracting copper, lead, zinc, and rare earth metals. These enterprises have advanced technologies and highly qualified specialists, which makes Uzbekistan an attractive partner for international cooperation in the mining industry.

Development of cooperation between Uzbekistan and Mongolia

Relations between Uzbekistan and Mongolia are rapidly developing, creating a solid foundation for cooperation in the mining industry. A significant event was the visit of the President of Mongolia, Mr. Ukhnaagiin Khurelsukh, to Uzbekistan, at which agreements were signed to strengthen economic and political ties. One of the important achievements will be the establishment of direct flights between Tashkent and Ulaanbaatar, which will significantly simplify business ties and serve the development of trade and economic cooperation. Shortly after, the President of Uzbekistan, Mr. Shavkat Mirziyoyev, is expected to visit Mongolia, opening up new opportunities for implementing joint projects.

Within the framework of bilateral cooperation, special attention is paid to the exploration and mining industry. Mongolia, possessing uranium, gold, copper, and other minerals, seeks to diversify its mining partners, and Uzbekistan is an ideal candidate for such cooperation with its experience and technological capabilities. The Uzbek side has great potential to participate in exploration projects in Mongolia, especially in the exploration and production of uranium and other minerals such as gold and copper.

Prospects for cooperation and the role of the state enterprise Navoiuran

Navoiuran plans to actively participate in uranium mining in Mongolia, using its rich experience and advanced technologies. The company intends to apply the proven in-situ washing method in Uzbekistan and introduce innovative approaches to geological exploration, which have been developed jointly with international partners such as Orano and CNUC. In addition, Navoi Mining and Metallurgical Company (NMMC) is considering the possibility of participating in projects to extract other metals, such as gold and copper, which strengthen economic ties between countries.

Cooperation between Uzbekistan and Mongolia in exploration and mining has every chance of becoming an example of a successful partnership based on mutual interests and exchange of experience. As a leader in the uranium industry, Navoiuran is ready to contribute significantly to the development of Mongolia’s mining industry, the economic growth of both countries, and the strengthening of their positions in the global mineral market.

To ensure the implementation of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan, Uzbek Overseas Geology Company LLC was established under the auspices of Uzbek Geological Exploration JSC and Uzbekgeofizika JSC, the main function of which is to conduct prospecting work.

In view of the above, on June 5-13 of this year, a delegation consisting of employees of the Uzbek Overseas Geology Company LLC and SE Navoiuran visited Mongolia and carried out the planned work.

In particular, the necessary documents for opening a branch (representative office) of Uzbek Overseas Geology Company LLC in Ulaanbaatar were issued in Mongolian, these documents were transferred to the Mongolian justice authorities for registration, the state duty was paid, and within 10 working days the local justice authority will issue a corresponding certificate of opening a branch (representative office) of Uzbek Overseas Geology Company LLC and the beginning of its activities.

The building was selected for the representative office of the Uzbek Overseas Geology Company LLC, and a lease agreement was signed.

The opening of a representative office of the Uzbek Overseas Geology Company LLC in the capital of Mongolia, Ulaanbaatar, is a sign that economic relations between Uzbekistan and Mongolia are reaching their peak.

UzA