French nuclear fuels company Orano confirmed on Wednesday that Nigerien authorities had taken control of its Somair uranium mine, as the military-led government continues its crackdown on foreign investors in the West African nation.
In a statement, Orano, which holds a 63 percent stake in the Somair mine, revealed that decisions made during the mine’s board meetings were no longer being followed. Niger owns the remaining 37 percent of the mine, and the move highlights the growing uncertainty for international companies operating in Niger, which accounts for about 4 percent of the global uranium supply.
‘Orano is today confirming that Nigerien authorities have taken operational control of the company,’ the company stated.
The situation in Niger has been growing increasingly tense since a military coup ousted President Mohamed Bazoum in July 2023, and the country has since pivoted towards building closer ties with other military-led governments in the region, including those in Mali and Burkina Faso. As a result, the business environment has become more precarious for foreign firms.
Orano’s operations in Niger have been critical to its uranium supply chain, with the country historically providing about 15 percent of the company’s uranium. However, the uncertainty surrounding the situation in Niger has led Orano to rely more heavily on its mines in Canada and Kazakhstan to meet its production targets.
The company had previously warned of growing interference in governance at the Somair mine, with operations grinding to a halt after authorities imposed a ban on exports. In addition, Orano reported that a resolution passed by the Somair board on November 12, which aimed to limit production expenditure to preserve funds for salaries, was being ignored by Nigerien authorities.
‘The deliberate disregard for our decisions is only worsening the company’s financial situation,’ Orano noted in its statement.
Orano also reiterated that it would ‘defend its rights before competent bodies’ in order to ensure that the Somair mine could resume normal operations. However, the company did not provide further details on how it planned to pursue these legal avenues.
In June, Orano was dealt another blow when Niger revoked the mining permit for its Imouraren subsidiary, and in July, GoviEx Uranium, a Canadian firm, lost its right to develop a uranium project in Niger.
While the uncertainty continues to hang over Orano’s operations, the company has made clear that it will continue to explore all avenues to resolve the issues. ‘We are committed to ensuring the smooth operation of our activities in Niger, but we are also prepared to take action if necessary to protect our interests,’ an Orano representative stated.
