Niger junta opposes Orano’s uranium production halt

FILE PHOTO: The logo with the new company name “Orano” of the French nuclear fuel group Areva is seen on the Areva Tower in La Defense near Paris, France, January 23, 2018. REUTERS/Philippe Wojazer/File Photo

Niger military junta is contesting a decision by French nuclear fuel company Orano to halt uranium production in the country, as revealed in a document obtained by Agence France-Presse (AFP). The dispute stems from Orano’s announcement last month that it would cease operations at its Somair mine, the last uranium production site it was still managing in Niger, due to challenging operating conditions and financial constraints.

Tensions over lack of consultation

The Nigerien state-owned company Sopamin, a co-shareholder with Orano in Somair, voiced frustration over the lack of consultation regarding Orano’s decision. In a document dated October 31, Sopamin described the halt as a ‘serious decision’ that ‘lacks transparency’ and breaches standard governance principles. The Nigerien firm, which has operated in northern Niger for over fifty years, criticised Orano’s unilateral action, which it claims undermines the commitment between stakeholders.

Orano attributed the production halt partly to Niger’s closed border with Benin, which has impeded the export of uranium. The company expressed disappointment that its proposal to export uranium to either France or Namibia received no response from Nigerien authorities.

A move towards local sourcing

The Nigerien junta, which took power in a July coup last year, has declared its intention to restructure the mining sector, setting new regulations for foreign companies in the world’s seventh-largest uranium-producing country. In response to Orano’s production halt, Niger indicated in the document a desire to purchase 210 tons of uranium directly through Sopamin, a move intended to keep Somair’s operations running.

Currently, 1,050 tons of uranium concentrate from 2023 and 2024, worth around €300 million ($360 million), remain stored and unsold due to export restrictions. Orano lamented the situation, pointing out that the unresolved border issues with Benin have severely impacted its ability to continue production.

New national uranium entity created

In a sign of Niger’s shifting stance on foreign mining, the Council of Ministers approved a decree in September to establish a national uranium company, Timersoi National Uranium Company (TNUC). The state entity will oversee Niger’s uranium assets and signals a step toward greater local control over mining resources.

Amid growing political distance from France, Niger is also exploring partnerships with countries like Russia and Iran to diversify its mining relationships and reduce reliance on its former colonial power. The uranium production halt and Niger’s subsequent response highlight the military government’s determination to exercise more influence over the country’s natural resources.

Credit: Agence France-Presse

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