French nuclear fuels company Orano and Uzbekistan’s state-owned uranium producer, Navoiyuran, have formalised an agreement for the industrial development of the South Djengeldi uranium mining project.

Under the agreement, the South Djengeldi project will be developed by Nurlikum Mining, a joint venture (JV) between Orano and Navoiyuran.

The project is due to be integrated into Navoiyuran’s existing industrial base, with Navoiyuran serving as the project operator.

The deal also introduces Japan’s Itochu as a minority stakeholder in Nurlikum Mining.

The South Djengeldi project is expected to sustain production for more than a decade and reach a peak annual production capacity of 700 tonnes (t) of uranium.

The uranium project is part of a larger cooperative programme with Navoiyuran, outlined in a strategic framework agreement signed in 2022 by Orano with the State of Uzbekistan.

The partners have since expanded their alliance to include the exploration and development of new uranium mines in Uzbekistan.

The collaboration will also launch an exploration initiative aimed at doubling the mineral resources of the JV.

Orano senior executive vice-president Xavier Saint Martin Tillet said: “This project contributes to diversifying the group’s production sources. This new phase was made possible by the work undertaken over the past five years in Uzbekistan.

“Orano aims to bring its geological and technical expertise to the further project’s development and, in doing so, support the expansion of the company’s operations.”

The Djengeldi area in the Kyzylkum desert, known for its rich uranium deposits, has been a production site for decades.

In September 2020, Nurlikum Mining received two exploration permits for the Djengeldi North and South zones, with 12,500t of resources registered by the Ministry of Mining Industry and Geology.

Navoiyuran is planning to develop an additional four mines between 2022 and 2026.

In January 2025, Orano and Mongolia’s Government signed an investment agreement to develop a $1.6bn uranium project in Dornogovi.