Growth in the mining exploration sector in Mongolia is slow, because the policies and laws that Mongolian government does not support investment in the mining exploration sector. To improve this situation, the government of Mongolia has made changes to investment laws in the mining sector. Changes in laws and licensing mining exploration is expected to increase the growth of the mining sector in Mongolia.

Uranium mining sector will be developed by the government of Mongolia. The development of uranium mining will cooperate with Russia. The two countries will form a joint venture to develop uranium deposits Dornad. Mining of uranium deposits located in the mine site can produce seven times more uranium.

Russia, which holds more than a tenth of global uranium reserves, is positioning itself as a major player in meeting the increasing demand for uranium from the nuclear power industry.

Russian President Dmitry Medvedev led a delegation to Ulaanbaatar and agree with the fellow Mongols, Tsakhiagiin Elbegdorj, to resolve disputes that have not paid the debt Mongols to move forward with a series of joint investment.

“New infrastructure and energy projects, development of atomic industry, the processing of uranium ore – this is the future that looks very interesting to me,” said Medvedev.

The joint venture also comes after Mongolia’s legislature in July passed a law that nuclear energy provides greater ownership of uranium deposits. Mongolian State claimed the right to 51 percent of all strategic uranium deposits.

Sergei Kiriyenko, head of Russia’s state nuclear company Rosatom, which is called the uranium deal “an important political signal” and said the investment in this project will reach “hundreds of millions of dollars.” He declined to give precise figures.

AtomMon Mongolian state and the mining company Rosatom arms, Atom-RedMedZoloto, agreed to create a joint venture to develop the deposit. Kiriyenko said Dornad held 28,000 tons of uranium reserves and that number could double with the exploration.

The two companies already have 21 percent of each license.

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