AKIPRESS.COM - Mongolia said on Friday it had reached a preliminary agreement with France's Orano Mining Group to develop a long-expected uranium mining project worth $1.6 billion, mining.com reportedjavascript:mctmp(0);.

A draft agreement for the deal was submitted to the Mongolian parliament for preliminary discussion, the Mongolian government said.

The project, with an initial investment of $500 million and a total investment of $1.6 billion, will start its preparatory phase from 2024 to 2027, with first production expected in 2028, the government said.

Peak production will hit 2,600 metric tons in 2044, it added.

"This agreement is a significant step forward in boosting inward investment and employment opportunities for the Mongolian people," the statement cited Mongolian Prime Minister Oyun-Erdene Luvsannamsrai as saying.