Mongolia holds one million tons of uranium reserves

ULAANBAATAR (Commodity Online) : Mangolia, lies between Russia and China said it holds nearly one million tons of uranium reserves and start exploring the commodity by next year.

Speaking at country’s parliament Prime Minister Batbold Sukhbaatar said the exploration will start by 2012, which means Mongolia will begin selling uranium beginning from 2013 or 2014.

At present, reserves of Mardai deposit in eastern province of Dornod and Kharaat in central gobi province of Dundgobi have been established and the feasibility study for the two deposits are underway.

He said a total of 107 prospecting licenses were issued to seventeen business entities, which are doing their respective prospecting works pursuant to the Nuclear Energy Law of Mongolia, under strict control of the Government.

The mining sector is Mongolia’s single largest industry, accounting for 55 percent of industrial output and more than 40 percent of export earnings. Coal provides 80 percent of its electricity (3 billion kWh in 2009), from less than 1 GWe capacity, and 13 percent of electricity is imported from Russia.

Mongolia has a long history of uranium exploration commencing with joint Russian and Mongolian endeavors from 1950s involving investment of some $ 200 million. Initial success was obtained in the Saddle Hills area of northeastern Mongolia (Dornod and Gurvanbulag regions) where uranium is present in volcanogenic sediments.

The main uranium prospect is the Dornod open cut mine and underground ore body, with the surrounding area containing a number of deposits in the Dornod Province in the far northeast of the country.

In September 2009 India signed a uranium supply and nuclear cooperation agreement with Mongolia. Russia is examining the feasibility of building nuclear power plants in Mongolia. (UB POST).

Source:UB Post newspaper of Mongolia, independent weekly newspaper of Mongolia