Niger Takes Control of Uranium Mining

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Following a military coup in 2023, Niger's Council of Ministers has awarded a number of mining permits for uranium mining projects to domestic and state-owned companies.

Government Control

Niger's Council of Ministers has set about taking full control of the nation's uranium mining industry by awarding permits to state-owned and local companies, three years after a military coup. 

A large-scale mining permit previously awarded to French company Orano SA (formerly AREVA) has now been awarded to newly created state-controlled entity, Teloua Safeguarding Uranium Mining Company (Tsumco SA). Separately, it awarded a uranium mining permit for the Madaouela I project to Madaouela Mining Co. - the Niger subsidiary of Australia-based Atomic Eagle, of which Niger controls a 40% stake. The company also agreed to pay the state an initial fixed fee of US$10 million. Both mining contracts were originally held by international companies, France's Orano and Canada's explorer GoviEx, which have had their licences revoked and who have spent recent years taking legal action in commercial courts against Niger's new government. According to Industrial Info Resources data there are four uranium-related projects in the country worth US$544 million in investment. 

Changing Hands

A council statement read: "This draft decree is issued to enshrine the award of the permit for Large Mining Exploitation called 'In Azaoua', thus allowing the continuity of uranium mining in Niger." Tsumco SA was created earlier this year after Niger nationalized SOMAIR (The Société des Mines de l'Aïr), which was until the coup 63% owned by Orano, which worked with the previous state mining company, Sopamin. At the same time, it announced the cancellation of the Arlit concession, granted to the French Atomic Energy Commission (CEA) in 1968. The government took control of SOMAIR last summer after alleging that Orano had extracted more uranium than its contract with the state permitted. It revoked Orano's licences for sites at Imouraren and Arlit. In 2024, it revoked GoviEx's licence at Madaouela.

Uranium in Niger

Niger's first commercial uranium mine began operating in 1971 under SOMAIR. Before the coup, the West African nation supplied roughly 5% of the world's uranium and was a leading supplier to the European Union (EU), accounting for more than 25% in 2022. France, which relies on nuclear power for two-thirds of its electricity, relied on Niger for 15% of its uranium. A year after the coup in 2024, data from the World Nuclear Association stated that Niger's global production share had dropped to 1.6%. For additional information, see August 14, 2023, article - Niger's Coup: Fall of Democracy and Economic Implications.

Recent Attacks by Rebels

In the past week, a rival military faction attacked the airport and the presidency in the capital city of Niamey, leading to hours of gunfire and explosions that rocked the city and knocked out state TV and radio temporarily. It was the latest in a series of armed conflicts against current leader Abdourahamane Tiani, who seized power in the 2023 coup, according to Reuters. The state has failed to stop insurgents and affiliates of terrorist organizations, al Qaeda and Islamic State, leading to high military casualties. Dissatisfaction with government promises to increase security in its key uranium regions and borders led to parts of the military siding with insurgents in the attack last week. 

Key Takeaways

• Niger's military-backed government has taken steps to control its uranium industry.
• Licences once held by international companies for strategic projects have been awarded to state-controlled companies and those the state has a significant share in. 
• Industrial Info Resources is tracking four uranium-related projects in the country worth US$5344 million in investment. 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).