KEY POINTS
- With the extraction of more than 10,000 tonnes of development ore, the Dasa mine in Niger has made progress.
- Due to a $295 million loan, Global Atomic can move forward with the project even in the face of political obstacles.
- Niger is improving its mining industry through reforms meant to secure sustainable development and maximize state revenue.
Driven in large part to Global Atomic’s dedication to pushing the project forward in spite of obstacles, the Dasa uranium mine, which is situated in west-central Niger, is rapidly rising to prominence in the uranium market.
The expansion and importance of the Dasa uranium mine
As of October 2024, the mine has produced over 10,000 tonnes of development ore, demonstrating significant progress already made. Niger, which is the seventh-largest producer of uranium in the world, depends on the Dasa mine for about 5 percent of its total supply.
The development of Dasa is critical for the economy of Niger as well as the larger world energy scene, since the need for nuclear energy is growing.
The Dasa mine’s underground ramp is now 1,200 meters deep, and plans are in place to build vital infrastructure, including a crusher and an acid plant. The camp at Dasa expands to accommodate about 450 workers, and that number will quadruple at the peak of construction next year.
Over a 23-year period starting in 2026, the mine is estimated to generate 68.1 million pounds of yellowcake, with ambitions to produce up to 1,200 tonnes per day from the processing plant.
Obtaining funding and overcoming obstacles
Thanks in major part to a $295 million loan from an unidentified U.S. development bank, which covers around 60% of the project’s $425 million cost, Global Atomic is able to continue constructing the Dasa mine.
To cover a portion of the remaining funds, the firm has already committed $120 million. In addition, it has obtained further capital through the sale of stocks and a private placement, raising $15 million in January and $20 million in July.
Notwithstanding the obstacles brought about by a military coup in Niger in July 2023, which resulted in the suspension of US government financing and the withdrawal of US troops from the nation, these investments are essential to the country’s progress.
Because nuclear energy is becoming a more viable source of sustainable power, the uranium industry is experiencing a boom. Recent increases in the price of uranium oxide, which were $82 a pound at the end of August from $78.50, were indicative of the industry’s optimism.
This increase has been correlated with contracts such as the 20-year power purchase agreement between Microsoft and Constellation at the Pennsylvanian plant Three Mile Island, which highlights the increasing emphasis on nuclear power as a component of international clean energy projects.
Broad effects on the mining industry in Niger
The growth of the Dasa mine is important not just for Global Atomic and its investors, but also for the mining sector in general in Niger. An assessment of current mining licenses and a temporary suspension of new ones are part of the mining sector reform that the Niger government, which is eager to increase mining earnings, has started.
The goal of this reform is to guarantee that Niger gets the most out of its abundant natural resources, which include iron ore, gold, and uranium. The objective is to enhance comprehension of the distribution of mining permits and execute changes that will optimize the state’s earnings.
Additionally, Global Atomic has offtake agreements for 1.3 million pounds of uranium per year, strengthening its position in the global uranium supply chain. Dasa is home to 73 million pounds of probable deposits of uranium oxide.
This achievement is especially significant because Niger provides around 20 percent of the uranium required by the European Union, which is necessary for the EU to generate nuclear power, especially in nations like France that mostly rely on nuclear energy to produce electricity.
In summary
The development at the Dasa uranium mine is evidence of Niger’s strategic significance in the world uranium market, as well as of Global Atomic’s tenacity. The project is moving forward in spite of obstacles like finance delays and political unrest, establishing Niger as a major participant in supplying the world’s growing uranium needs.
The development of the mine will not only be very beneficial to the economy of Niger, but it will also be a major factor in bolstering the global transition to nuclear energy, highlighting its significance as a reliable, low-carbon energy source.
