Orano (formerly Areva) signed the deal during a state visit by Mongolian President Ukhnaa Khurelsukh, giving it exploitation rights alongside a local partner for the Zuuvch-Ovoo mine in the country's southwest.

A French official told AFP in June the project was estimated at "more than a billion euros" and would "make it possible to extract a significant quantity of uranium" to "reinforce the strategic autonomy" of France.

The two countries have pledged to expand ties, with French President Emmanuel Macron visiting Mongolia in May.

His office says it wants to give Mongolia, which is surrounded by China and Russia, "the means to benefit from greater strategic sovereignty" in the face of these "two extremely powerful neighbours."

A full investment agreement, due to be finalised by the end of the year, is also due to include the provision of a telecoms satellite to Mongolia by French firm Thales and a project to search for lithium deposits.

A state dinner was due later on Thursday at the Elysee palace for Khurelsukh and around 100 guests.

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AREVA

THALES