G.Luuzan: If we have enough fund and professionals, Mongolia would have Nuclear Power Plant in 10 years
During Prime Minister S.Batbold’s visit to the Southern Gobi region, Areva Mongol Company revealed that it will start production in near future. Therefore, business-mongolia.com brings to our readers an interview of Mr G.Luuzan, Vice Director of Areva Mongol, made by Unuudur daily newspaper on June 23 2010.
Q: When and how Areva Mongol entered into Mongolia?
G.Luuzan: First it entered into Mongolia in 199, established Cogegobi JVC with its Mongolian partner GobiGeo and acquiring 70% of its interest. Later in 2009, it bought the remaining 30% from GobiGeo and has become 100% French invested company in Mongolia.
Q: How many employees do you have in Mongolia?
G.Luuzan: Around 120 and 90% of them are Mongolians.
Q: Can you inform us about your achievements in the past?
G.Luuzan: We conducted exploration works in Dornod, Sukhbaatar, Dornogobi, Umnugobi aimags and Sainshand basin exploration results are promising for us. We detected 10,000 tons of uranium in the field, located south west of Zuunbayan. The exploration work is carried our right at the moment and its reserve size could increase further. Our company prepares to start experimental mining operation. If it will succeed, we will build mining facility on site. When we mine the mineral, we will use underground heap leach technology. It has several advantages; first, it is environmentally friendly technology of mining, dissolving uranium hosting ore bodies in the underground and pulls it using pipe from the surface. Areva uses such technology in Kazakhstan, USA and other countries. Basically, livestock can pasture on the surface when the mining operation is conducted. It is also cost effective and minable for scattered uranium ore bodies with lower grades also.
Q: When heap leach ore bodies, it will use chemicals? Do those chemicals harmful under the surface?
G.Luuzan: Of course chemicals shall be used in dissolving ore body and that dissolved part is harmful to environment. But science and technology development has reached to the findings to paralyze such harms down to zero.
Q: Media sources say that Mongolia is rich in uranium and it will become the largest reserve with its uranium in the world. How do you think about it? Do we really that rich in uranium?
G.Luuzan: Mongolia is rich in uranium. But there is no specific data and statistics on its reserve. Many years of research and study is required to say such number also. There are many predictions and anticipations on this part. But I would say that 60,000 tons of uranium reserve in Mongolia can be closer to the reality. However, I believe that this figure will become much clear and increase in the near future. Foreign media sources say that Mongolia would rank at #14 or #15 in the world with its reserve. As of 2007, Canada 23%, Australia 20%, Kazakhstan 16%, Namibia 9%, Russia 8%, Uzbekistan 5%, USA 4% and other countries provide 8% of the total production of uranium in the world. Kazakhstan has reserve of 1.5 million tons. So, those anticipations seems to be not correct.
Q: At what level of production will be made by Areva in Mongolia? Mongolia’s position on mineral resource is not to export in raw.
G.Luuzan: Correct. But we have things that we can do and can’t. Also there are things we need to learn and be patient until we can handle. Personally, I think that Mongolia needs many years to become uranium developer. Uranium enrichment is very delicate operation requiring high end and expensive technology. $5 billion is required only to build factory. But above all, training of several hundred workers to work for the factory requires dozen years to complete. Plus, energy and electricity resource shall be sufficient and reliable. Over 60% of uranium enrichment cost is spent on electricity.
Q: Do we really need to have nuclear power plant? Is it safe from any damage or accident?
G.Luuzan: Yes, Mongolia needs to have it in the near future. World is worrying about greenhouse gas effect and united to fight against this phenomenon. This is directed to decrease use of bulk mineral such as coal, gas and oil replacing with nuclear and clean energy. Also, if we use this bulk mineral at this pace, world reserve will finish in 50-100 years from now.
Q: When and how Areva Mongol entered into Mongolia?
G.Luuzan: First it entered into Mongolia in 199, established Cogegobi JVC with its Mongolian partner GobiGeo and acquiring 70% of its interest. Later in 2009, it bought the remaining 30% from GobiGeo and has become 100% French invested company in Mongolia.
Q: How many employees do you have in Mongolia?
G.Luuzan: Around 120 and 90% of them are Mongolians.
Q: Can you inform us about your achievements in the past?
G.Luuzan: We conducted exploration works in Dornod, Sukhbaatar, Dornogobi, Umnugobi aimags and Sainshand basin exploration results are promising for us. We detected 10,000 tons of uranium in the field, located south west of Zuunbayan. The exploration work is carried our right at the moment and its reserve size could increase further. Our company prepares to start experimental mining operation. If it will succeed, we will build mining facility on site. When we mine the mineral, we will use underground heap leach technology. It has several advantages; first, it is environmentally friendly technology of mining, dissolving uranium hosting ore bodies in the underground and pulls it using pipe from the surface. Areva uses such technology in Kazakhstan, USA and other countries. Basically, livestock can pasture on the surface when the mining operation is conducted. It is also cost effective and minable for scattered uranium ore bodies with lower grades also.
Q: When heap leach ore bodies, it will use chemicals? Do those chemicals harmful under the surface?
G.Luuzan: Of course chemicals shall be used in dissolving ore body and that dissolved part is harmful to environment. But science and technology development has reached to the findings to paralyze such harms down to zero.
Q: Media sources say that Mongolia is rich in uranium and it will become the largest reserve with its uranium in the world. How do you think about it? Do we really that rich in uranium?
G.Luuzan: Mongolia is rich in uranium. But there is no specific data and statistics on its reserve. Many years of research and study is required to say such number also. There are many predictions and anticipations on this part. But I would say that 60,000 tons of uranium reserve in Mongolia can be closer to the reality. However, I believe that this figure will become much clear and increase in the near future. Foreign media sources say that Mongolia would rank at #14 or #15 in the world with its reserve. As of 2007, Canada 23%, Australia 20%, Kazakhstan 16%, Namibia 9%, Russia 8%, Uzbekistan 5%, USA 4% and other countries provide 8% of the total production of uranium in the world. Kazakhstan has reserve of 1.5 million tons. So, those anticipations seems to be not correct.
Q: At what level of production will be made by Areva in Mongolia? Mongolia’s position on mineral resource is not to export in raw.
G.Luuzan: Correct. But we have things that we can do and can’t. Also there are things we need to learn and be patient until we can handle. Personally, I think that Mongolia needs many years to become uranium developer. Uranium enrichment is very delicate operation requiring high end and expensive technology. $5 billion is required only to build factory. But above all, training of several hundred workers to work for the factory requires dozen years to complete. Plus, energy and electricity resource shall be sufficient and reliable. Over 60% of uranium enrichment cost is spent on electricity.
Q: Do we really need to have nuclear power plant? Is it safe from any damage or accident?
G.Luuzan: Yes, Mongolia needs to have it in the near future. World is worrying about greenhouse gas effect and united to fight against this phenomenon. This is directed to decrease use of bulk mineral such as coal, gas and oil replacing with nuclear and clean energy. Also, if we use this bulk mineral at this pace, world reserve will finish in 50-100 years from now.
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