Uranium

From Mongol Studies Online Reference

One of 35 countries in the world with known uranium resources, Mongolia’s government places their proven reserves at around 63,000 metric tons. This gives Mongolia the 15th largest proven uranium reserve in the world. ^[1] The top two world suppliers are currently Canada and Australia, together making up over half the world's available uranium supply.^[2] In the 1980’s, Soviet and Mongolian geological teams conducted joint studies, estimating that there exist six major uranium strata in Mongolia, with at least 100 actual deposits. At that time, Soviet geologists estimated Mongolia has anywhere from 120,000 to 150,000 metric tons in its proven reserves, which would give Mongolia the eighth largest proven reserves worldwide.^[3] Overall it is generally estimated that the unexplored resources of the entire country total over 1.3 million metric tons, potentially the largest remaining unproven uranium resource in the world. However, there still exist huge discrepancies between estimates, generally depending on the source of the study, so the actual size of Mongolia's uranium resources remains unclear.^[4]

Contents 1 History 2 International Presence 3 Government Action 4 Sites 4.1 Dornod Aimag 4.2 Dornogovi Aimag 4.3 Dundgovi Aimag 4.4 Arkhangai Aimag 5 Companies 6 Background Information 7 References

[edit] History

Official exploration of Mongolia’s uranium reserves began in the 1957 by the Soviet Union, in both the Dornogovi and the Dornod aimags. Some reports have Soviet engineers mapping Mongolia’s uranium deposits as early as the 1940’s.^[5] Significant reserves were found in the Saddle Hills area of northeastern Dornod. The uranium “city” of Mardai was constructed by the Soviet Union over Mardaigol Reserves in that region in the mid to late 1980’s, as a source of strategic reserves of uranium for Soviet stockpiles.^[6] In 1993, it was abandoned following the collapse of the Soviet Union, which also allowed international firms and competition for Mongolia’s significant reserves. Currently Canadian, American, Japanese, Chinese, Russian, French and South Korean companies all are involved in the drilling, exploration, or proposed importation of uranium from Mongolia.^[7]

[edit] International Presence

There exists significant international interest in Mongolia’s uranium reserves, mainly between Russia, China, Japan and Western firms. Russia has historically retained control of most of Mongolia’s uranium reserves, due to their unique Cold War satellite relationship.^[8] Russia has stepped up aid and bilateral trading efforts, in order to gain the upper hand over Mongolian reserves. Moscow has made it a goal to become the world’s top uranium supplier and Mongolia’s uranium resources could present a major boon to Russia’s uranium enrichment outfit.^[9] However, a multitude of Canadian companies stepped in following the Soviet Union’s collapse and bought rights to explore the major uranium assets already developed by Russian geologists.^[10]

On August 25, 2009 the Russian and Mongolian governments signed a joint agreement giving rights to RosAtom, the Russian Federation’s state owned atomic energy corporation, and MonAtom, the Mongolian equivalent, for exploration and mining of the Dornod project in Eastern Mongolia.^[11] This was in exchange for 300 million USD in agricultural aid as well as promises to help develop Mongolia’s limited railway infrastructure and future cooperation on the construction of domestic nuclear energy in Mongolia.^[12] Currently, 58% of the site is currently owned by the Canadian firm Khan Resources Ltd.^[13]

China, in hopes of increasing its nuclear power capacity at least 10-fold by 2020, has also stepped in and purchased ownership over several of these companies, including Western Prospector Ltd. and Chain Bright Ltd.^[14] However, fears of special treatment or a dependency on China, as Mongolia’s top trading partner, have frustrated several of China’s efforts to tap into Mongolia’s mineral resources.^[15]

Japan’s Marubeni corporation has bought rights to conduct a feasibility study of reserves in Mongolia’s uranium rich east, and has plans to invest over 430 million USD in exploration. Moreover, Russia and Japan recently signed a joint nuclear energy cooperation agreement, which could eventually mean Japanese involvement in the Mardai mines.^[16]

The Director General of the IAEA, Mohammed El-Baradei has also made several trips to Mongolia for talks with the government regarding safe and controlled use of Mongolia’s significant reserves.^[17]

[edit] Government Action

The Mongolian government, after wresting itself from Soviet satellite status in the early 1990’s, has adopted several different attitudes towards uranium mining by foreign outfits. Initially, the government was lax in their allowance of various international firms to begin exploration of its resources. ^[18] Gradually, restrictions began to be set in place and in 1997, Mongolia introduced the Minerals Law to regulate the sale and utilization of its domestic mineral supply.^[19] In July of 2006, the Mineral Law was further amended to include the regulation of “strategic resources”, defined as deposits that are in high demand internationally or affect Mongolia’s social, economic or security development. In July of 2009, Mongolia suspended the licenses of several Canadian mining firms, including Khan Resources Inc. and Western Prospector Ltd. and subsequently adopted a Nuclear Energy Law, which among other things, stipulated that the Mongolian government should own 51% of any strategic uranium deposit.^[20]

[edit] Sites

[edit] Dornod Aimag

• Mardai
• Gurvanbulag (Saddle Hills)
• Dornod-Uran
• Nemer
• Naidal
• Emeelt

[edit] Dornogovi Aimag

• Ulaan Nuur

[edit] Dundgovi Aimag

• Gurvan Saihan
  • Haraat
  • Hairhan

[edit] Arkhangai Aimag

• Jargalan

[edit] Companies

List of Companies With Investment in Mongolia's Uranium

• Khan Resources Inc.
• Mon-Atom LLC
• Western Prospector Ltd.
• Marubeni
• Rosatom

[edit] Background Information

• General Background on Uranium & Nuclear Energy Prepared by Cameco Inc.
• Wikipedia Page on Uranium
• Current Uranium Price and Price Forecasting

[edit] References

1. ↑ "Mongolia." Uranium in Central Asia. World Nuclear Association. Retrieved on 10 Aug. 2009.
2. ↑ [1]
3. ↑ "MONGOL-RUSSIAN URANIUM COOPERATION." Central Eurasian Caucasus Institute Analyst (2008).Retrieved on 20.Aug.2009.
4. ↑ "Mongolia's Uranium" Asia Economic Institute (2009). Retrieved on 15.Aug.2009.
5. ↑ [2]
6. ↑ [3]
7. ↑ Agvaanluvsan Undraa. "Mongolia and Her Uranium Prospects." Mining Mongolian Journal. 18 Feb. 2009. Retrieved on 01.Aug.2009.
8. ↑ [4]
9. ↑ [<http://www.uraniuminvestingnews.com/2088/mining-in-mongolia%E2%80%94part-3.html| Melissa Pistilli "Mining in Mongolia-Part 3." Uranium Investing News (2009). Retrieved on 13.July.2009]
10. ↑ [5]
11. ↑ "Russia Regains Foothold in Mongolia's Uranium Mines." Reuters.com. Reuters, 25 Aug. 2009. Retrieved on 27.Aug.2009.
12. ↑ [6]
13. ↑ "Nuclear Gazumping in Mongolia." Your Nuclear News. Retrieved on 26 Aug. 2009.
14. ↑ [7]
15. ↑ R. Badamdamdin. "Interview with Monatom LLC Director." Interview. Mining.mn. Retrieved on 20.Aug. 2009.
16. ↑ Trading Houses, Global Rivals Vie For Mongolian Uranium." Nikkei.com [Tokyo, Japan. Retrieved on 27.Aug.2009.]
17. ↑ [8]
18. ↑ [9]
19. ↑ The Mineral Law of Mongolia
20. ↑ "Unwelcome surprises for uranium firms." World Nuclear News 26 July 2009.Retrieved on 10.Aug.2009.