KEY POINTS
- Niger asserts operational control over Orano’s Somair uranium mine.
- Governance interference forces Orano to suspend production in Niger.
- Global uranium market adapts as Niger’s political climate shifts.
The French nuclear fuels company Orano has announced that Niger’s military-led government has taken operational control of its Somair uranium mine.
Orano, which holds a 63 percent stake in the mine, has expressed concerns about interference in the company’s governance. Niger, which owns the remaining stake, has been increasing pressure on foreign investors following the military coup last year.
In a statement, Orano confirmed the shift in operational authority and stated that decisions made during Somair board meetings were no longer being implemented.
The company vowed to protect its rights through competent legal avenues to ensure the mine operates as expected. However, Nigerien authorities have yet to comment on the situation.
Uranium, essential for nuclear energy production, has been a critical export for Niger, contributing about 4 percent to global uranium output.
Orano previously relied on Niger for around 15 percent of its uranium supplies when operations were at full capacity. However, the halt in exports from Niger has been offset by increased production from mines in Canada and Kazakhstan.
Struggles in governance and production
The challenges for Orano in Niger began months ago, with interference in the governance of the Somair mine. The company reported suspending production after Nigerien authorities halted uranium exports last year.
According to Reuters, this decision forced Orano to adopt measures like limiting expenditures to preserve funds for salaries.
On November 12, the Somair board adopted a resolution to suspend production-related expenditures to stabilize the company’s financial position. However, Orano claims that the resolution is being ignored, further exacerbating the mine’s financial difficulties.
In addition to the operational challenges at Somair, Niger has been tightening restrictions on mining permits. Orano’s Imouraren subsidiary had its mining permit revoked in June, while Canada’s GoviEx Uranium lost its rights to develop a uranium project in Niger in July.
The future of uranium production in Niger
Orano has been a significant player in Niger’s uranium sector for years, making the recent developments troubling for the international business climate in the country.
While the company insists on defending its rights and resuming normal operations, the future remains uncertain.
With the current challenges, Niger risks destabilizing one of its vital industries. Orano’s decision to ramp up production in Canada and Kazakhstan demonstrates the global market’s adaptability but also highlights the potential long-term economic consequences for Niger if the situation is not resolved amicably.
Niger’s uranium sector, already a critical part of the global nuclear energy supply chain, must find a balance between asserting sovereignty and maintaining favorable conditions for foreign investors.
