Badrakh Energy

Profile

Badrakh Energy is a responsible mining company committed to the development of the world-class Zuuvch Ovoo uranium deposit in the Dornogobi region. The Zuuvch Ovoo project is the most advanced uranium mining development project in Mongolia. Badrakh Energy LLC adheres to best-practice standards and is proud of its excellent environment, health and safety record. The company has 90 employees, 96% of whom are from Mongolia.

Key dates

2013 Resources classification of the Zuuvch Ovoo deposit
2013 Signature of Shareholder Agreement of AREVA Mines LLC
2015 Appproval of the Zuuvch Ovoo Project Feasibility Study
2016 Granting of 3 mining licenses
2017 Mon-Atom takes 34% share of capital
2018 AREVA Mines LLC becomes Badrakh Energy
2018 Zuuvch Ovoo pilot test site constructed



Badrakh Energy holds three mining licenses for the Zuuvch Ovoo and Dulaan Uul uranium deposits (the Dulaan Uul deposit covers the Dulaan Uul and Umnut areas) in the Dornogobi Province.

Registered resources for Zuuvch Ovoo (54,640 tU) and Dulaan Uul (6,260 tU) represent 44% of the current official resources of Mongolia.

Badrakh Energy LLC is conducting mining development operations at Zuuvch Ovoo, including detailed feasibility work and an In-Situ Recovery (ISR) Pilot test.



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Shareholders of Badrakh Energy LLC

Orano, France

Orano, a French state-owned group, transforms nuclear materials so that they can be used to support the development of society, first and foremost in the field of energy.

The group offers products and services with high added value throughout the entire nuclear fuel cycle, from raw materials to waste treatment. Its activities, from mining to dismantling, as well as in conversion, enrichment, recycling, logistics and engineering, contribute to the production of low carbon electricity.

Orano and its 16,000 employees bring to bear their expertise and their mastery of cutting-edge technology, as well as their permanent search for innovation and unwavering dedication to safety, to serve their customers in France and abroad.


Orano at a glance

70
years of experience in uranium mining across the globe

3rd
world uranium producer in 2017
10,531 tU
produced in 2017

5
operating uranium mines in 3 countries


Mitsubishi Corporation, Japan

Mitsubishi Corporation is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods and environmental business. MC’s current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.

With more than 200 offices and subsidiaries in approximately 90 countries worldwide and a network of over 600 group companies, Mitsubishi Corporation employs a multinational workforce of nearly 65,000 people.

In December 2009, AREVA signed an agreement with Mitsubishi Corporation (MC) (link) concerning Mitsubishi’s financial participation in uranium exploration in Mongolia, giving the company the option of acquiring a 34% interest in AREVA MONGOL.

In November 2011, MC exercised this option to acquire an equity interest in AREVA MONGOL, becoming a financial partner in the project. Mitsubishi’s entry was validated by the Mongolian government and took place in October 2013.

Mon-Atom, Mongolia

The parliament of Mongolia adopted the radioactive minerals and nuclear energy policy and the Law on Nuclear Energy in 2009. The state-owned limited liability company MON-ATOM was established under act no. 45 of the government resolution in 2009 pursuant to the Government Action Plan determining “to increase the proven reserves of uranium and to collaborate with interested strategic investors regarding the exploitation”.

MON-ATOM works to perform the survey, exploration and reconnaissance of uranium and other types of radioactive minerals on the territory of Mongolia, to identify the reserves; to produce the feasibility studies for their extraction and processing, to participate in the production phase as the shareholder, to impose supervision, to prepare the highly professional labor force and material basis of the industry, to implement the responsible mining principles, to ensure the safety in the production, to determine the strategic policy of the uranium mining and to represent the government involvement in the joint projects.

In June 2017, according to the Shareholders’ agreement, 34% shares of Badrakh Energy LLC were transferred to Mon-Atom LLC without recourse to sovereign financing. Mon-Atom is empowered by the Mongolian government to execute its share in the company.

Orano's commitments

Orano’s aim is to achieve profitable growth in a socially and environmentally responsible manner. Its approach has a strong ethical foundation and takes into account the concerns of stakeholders in all countries where the group and its subsidiaries operate.

This approach is based on Orano’s Code of Ethics.



EITI

Since 2003, by lending its support to the Extractive Industries Transparency Initiative (EITI) - a coalition to promote financial transparency and work against corruption - Orano has demonstrated its commitment to greater transparency in payments made to countries in relation to the management of mining resources.

Any revenue that governments receive from Orano (taxes, royalties or fees) is stated in reports that are verified by independent experts.

The members of the EITI board classified Mongolia a “compliant country” in December 2010, meaning that it meets the EITI standard for financial transparency.

ICMM

Since 2011, Orano is a member of the international Council of Mining and Metals, an international organization dedicated to enabling a safe, fair, and sustainable mining and metals industry. Orano applies the 10 principles of the ICMM sustainable development framework within its mining culture and operational activities, setting up transparent and accountable reporting practices. These practices are self-assessed every two years.

GRI

As of 2014, Corporate Social Responsibility (CSR) audits are conducted by an external auditor to build credibility with stakeholders regarding Orano’s efforts and identify opportunities for further improvement on a regular basis.



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