MINEX Forum

Tag: Mongolia

  • Orbminco Commences Geophysical Surveys at Bronze Fox Copper-Gold Project in Mongolia

    Orbminco Commences Geophysical Surveys at Bronze Fox Copper-Gold Project in Mongolia

    Orbminco Limited (ASX: OB1) has commenced geophysical surveys at its Mongolian Bronze Fox Project, advancing exploration ahead of an upcoming drilling program.

    Key Highlights

    • Geophysical Surveys: IP and Gravity surveys now underway to refine the final hole design for Q3 2025 diamond core drilling.
    • Targeted Prospects: Drilling will focus on the high-grade copper-gold extension at West Kasulu and the undrilled Shuteen North prospect.
    • Strategic Position: Mongolia’s Southern Gobi region continues to attract global mining interest, positioning Orbminco as a key independent explorer in this world-class copper province.

    Orbminco’s Managing Director, Ralf Kriege, expressed enthusiasm, stating, “The team is eager to build on recent geological findings at a time when Mongolian projects in the Southern Gobi Copper-Gold Belt are gaining unprecedented attention.”

    For further details, visit Orbminco Limited.

  • Xanadu Mines Withdraws Key Resolution on Khuiten Metals Put Option at EGM

    Xanadu Mines Withdraws Key Resolution on Khuiten Metals Put Option at EGM

    Xanadu Mines Ltd has announced the outcome of its Extraordinary General Meeting, revealing that a key resolution concerning the exercise of a 25% Put Option related to Khuiten Metals Pte Ltd was not presented to shareholders. The company had previously communicated its intention to withdraw the resolution ahead of the meeting.

    The move may have strategic implications for Xanadu Mines, potentially affecting its investment structure and stakeholder expectations. The decision marks a notable moment in the company’s evolving approach to portfolio management and partnerships.

    Xanadu Mines Ltd, listed on the ASX and TSX, operates primarily in Mongolia, offering investors exposure to copper-gold discoveries and low-cost growth opportunities. Its flagship Kharmagtai project remains central to its exploration portfolio.

    The company currently holds a market capitalization of $64.45 million and maintains a strong technical sentiment rating of “Strong Buy,” with an average daily trading volume of 96,971 shares.

  • Mongolia Pushes for New China Railway Link to Boost Coal Trade

    Mongolia Pushes for New China Railway Link to Boost Coal Trade

    Mongolia is set to urge China next week to approve a new railway connection aimed at expanding their already growing coal trade. Prime Minister Oyun-Erdene Luvsannamsrai will visit China on February 13 to sign an agreement for the cross-border railway and the expansion of coal production at the Tavan Tolgoi mine, a government spokesperson told Bloomberg.

    While China’s Foreign Ministry declined to comment on the matter, spokesperson Guo Jiakun stated that both nations remain committed to strengthening bilateral cooperation. Mongolia was China’s fourth-largest foreign coal supplierin 2023, providing 60% of its coking coal imports. A trade boost would increase Mongolia’s revenue, while China seeks alternatives to U.S. and Russian coal due to tariffs and sanctions.

    Mongolia’s parliament has already approved the railway link and allocated 976 billion tugrik ($283 million) for Erdenes Tavan Tolgoi, a state-owned miner, to fund the project, according to Ikon News. The deal with China is also expected to cover coal sales and purchase agreements.

    Mongolia’s coal shipments to China soared to 83 million tons in 2024, up from 70 million in 2023 and 31 million in 2022, following the construction of a 240-km railway from the Tavan Tolgoi mine to the border. However, the gauge difference between Mongolian and Chinese railways remains a key logistical challenge.

  • Orano and Mongolia Sign $1.6bn Deal for Uranium Project

    Orano and Mongolia Sign $1.6bn Deal for Uranium Project

    France’s Orano Group has partnered with Mongolia’s government to develop the Zuuvch-Ovoo uranium mine, a $1.6 billion project in Dornogovi province. The agreement, signed in Ulaanbaatar, signifies a step forward for Mongolia’s mining sector and global low-carbon energy goals. Orano, in collaboration with Mongolia’s MonAtom Group, will oversee operations through their joint venture, Badrakh Energy.

    The mine, with an estimated 90,000 tonnes of uranium reserves, will leverage in-situ recovery methods. An initial $500 million investment will lead to production starting in 2028, creating 1,600 jobs and boosting Mongolia’s economy. With a projected output of 2,500 tonnes annually over 30 years, the project aligns with Mongolia’s Vision 2050 goals.

    Orano CEO Nicolas Maes emphasized the mine’s role in promoting low-carbon energy. Prime Minister Oyun-Erdene Luvsannamsrai celebrated the partnership as a milestone for economic growth and international collaboration, strengthening ties between Mongolia and France.

  • Mongolia and Orano Sign Uranium Mining Agreement for Zuuvch Ovoo

    Mongolia and Orano Sign Uranium Mining Agreement for Zuuvch Ovoo

    The Orano Group and the Mongolian government have formalized an agreement for the development and operation of the Zuuvch Ovoo uranium mine, marking Mongolia’s reentry into uranium mining after nearly three decades. Managed by Badrakh Energy—a joint venture between Orano and MonAtom Group—the project encompasses the Zuuvch Ovoo and Dulaan Uul deposits, with estimated uranium resources nearing 90,000 tonnes.

    Using in-situ leach technology, production is set to commence within four years, targeting a capacity of 2,500 tU annually over 30 years. An initial investment of $500 million will be followed by $1.6 billion throughout the mine’s lifespan. The project will generate 1,600 jobs and ensure over 51% of the direct benefits, including taxes and royalties, flow to Mongolia.

    The initiative aligns with Mongolia’s Vision 2050 goals, supporting economic growth and low-carbon energy. Prime Minister Oyun-Erdene Luvsannamsrai highlighted its contribution to inward investment and employment, while Orano CEO Nicolas Maes emphasized its role in global energy security.

  • Erdene Resource Development: A Dual Promise of Near-Term Gold Production

    Erdene Resource Development: A Dual Promise of Near-Term Gold Production

    Erdene Resource Development Corp. (ERD.CA) is gaining attention as a standout investment opportunity, combining imminent gold production with significant exploration upside.

    The company’s flagship Bayan Khundii (BK) deposit in Mongolia is on track for its first gold pour by mid-2025. BK’s high-grade, open-pit structure and favorable economics position it as a key driver of Erdene’s growth. With proven and probable reserves of 513,700 ounces of gold and an average head grade exceeding 3 g/t — three times the global average for open-pit mines — the project boasts an after-tax net present value of $275 million (at $2,200/oz gold) and an internal rate of return of 49%. All-in sustaining costs are projected to be just $869/oz, suggesting robust profitability in today’s high gold price environment.

    Exploration in a High-Potential District
    Erdene holds a 50% stake in the broader Khundii district, which it controls alongside Mongolian Mining Co. Over the years, the company has identified several additional gold and polymetallic targets within the district.

    The Khundii region lies within the Central Asian Orogenic Belt, known for hosting world-class deposits such as Kumtor (14 million ounces), Almalyk (25 million ounces), Muruntau (140 million ounces), and Oyu Tolgoi (62 million ounces). Ongoing exploration suggests that Khundii could develop into a similarly large-scale gold district.

    Drilling programs across Erdene’s property licenses have consistently delivered high-grade results, and the company expects more market-moving updates as the year progresses.

    Progress Toward Production
    Erdene and its local partner are rapidly advancing the BK project toward construction and cash flow. The company’s ability to pair near-term production with continued exploration success highlights its unique value proposition.

  • Mongolia and France’s Orano Group Reach Preliminary $1.6 Billion Uranium Mining Deal

    Mongolia and France’s Orano Group Reach Preliminary $1.6 Billion Uranium Mining Deal

    Mongolia has announced a preliminary agreement with Orano Mining Group, a leading French uranium producer, to develop a significant uranium mining project worth $1.6 billion. This project will commence its preparatory phase in 2024, with the goal of initiating uranium production by 2028. The peak production target of 2,600 metric tons is expected by 2044. The government emphasized the importance of this agreement in promoting foreign investment and creating substantial employment opportunities for the Mongolian workforce.

    Orano has been present in Mongolia for over 25 years, conducting extensive exploration activities. The French company, with established mining operations in regions such as Canada, Kazakhstan, and Niger, is expected to bring its expertise to the country’s uranium sector. This agreement follows years of anticipation and is viewed as a strategic move to enhance Mongolia’s role in the global uranium market. However, a previous announcement about the finalization of the agreement was corrected, confirming that only a preliminary deal had been reached.

  • Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    French state-controlled mining company Orano SA announced that its long-awaited uranium project in Mongolia, the Zuuvch Ovoo mine, could begin production by 2030, following five years of construction. The project’s future hinges on the signing of an investment agreement, with a confirmation vote scheduled for the current session of Mongolia’s parliament.

    Orano’s representative in Mongolia, Olivier Thoumyre, revealed that the mine could become the largest in the country since Rio Tinto’s Oyu Tolgoi copper-gold project. Zuuvch Ovoo has been in development for over a decade, initially launched by Orano’s predecessor, Areva SA, in partnership with Mongolia’s state nuclear company, Mon-Atom.

    The global demand for uranium is on the rise as countries such as China continue to build nuclear power plants, and other nations in Europe and Asia focus on nuclear energy as part of their strategies to reduce carbon emissions. This growing demand positions Mongolia to potentially become a key player in the uranium market, according to Thoumyre, who spoke at an industry event in Nalaikh, near Ulaanbaatar.

    The reappointment of Prime Minister Oyun-Erdene Luvsannamsrai in July has provided a sense of stability, encouraging continued negotiations between the Mongolian government and Orano. Discussions on the project’s terms, which began a year ago, have remained active, Thoumyre added.

  • Steppe Gold Shareholders Approve Boroo Gold Acquisition and Tres Cruces Project Sale

    Steppe Gold Shareholders Approve Boroo Gold Acquisition and Tres Cruces Project Sale

    Steppe Gold Ltd shareholders have overwhelmingly approved the acquisition of Boroo Gold and the sale of the Tres Cruces Oxide Project to Boroo Singapore for C$12 million. The approval, with 99% support, was secured at the annual meeting. Following this transaction, Steppe Gold will become the largest primary gold producer in Mongolia.

    The deal integrates Steppe’s ATO Gold Mine with Boroo Gold, aiming for an annual production of over 150,000 ounces of gold by 2026. Boroo Gold’s reported revenue of US$132 million in 2023 from 67,315 ounces of gold will provide immediate cash flows for the combined entity. The enlarged company expects to achieve cost savings through bulk purchasing and reduced administrative expenses.

    Additionally, this acquisition expands Steppe’s exploration opportunities near its existing mines, allowing the company to focus more closely on its Mongolian assets by divesting the Tres Cruces Project. The transaction, expected to close around July 16, is subject to regulatory approvals from the Toronto Stock Exchange and Mongolian authorities.

  • Mongolia’s Mineral Wealth: Balancing Economic Growth and Governance Challenges

    Mongolia’s Mineral Wealth: Balancing Economic Growth and Governance Challenges

    Mongolia is at a pivotal juncture, leveraging its abundant mineral resources to bolster economic growth. The nation boasts some of the world’s largest reserves of copper and rare earth elements, making it a key player in global supply chains. Strategically situated between China and Russia, Mongolia aims to diversify its economic and diplomatic ties through its “third neighbor policy.” Despite its mineral wealth, Mongolia faces significant governance challenges, including corruption and political instability. Recent efforts focus on legal reforms and international cooperation to enhance transparency and attract foreign investment.

    Mongolia’s economic strategy is deeply intertwined with its diplomatic maneuvers, seeking to balance relationships with powerful neighbors and global partners. The country’s mineral sector is a cornerstone of this strategy, driving growth and development. However, governance issues pose risks to stability and investor confidence. Mongolia’s government is actively working on reforms to improve regulatory frameworks, ensuring that its mineral wealth translates into sustainable development for its population.

    The nation’s commitment to international cooperation is evident in its efforts to engage with various global entities and countries. By fostering a transparent and investor-friendly environment, Mongolia hopes to harness its mineral wealth effectively while addressing internal governance issues. This delicate balancing act is crucial for the country’s long-term economic prosperity and geopolitical stability.