Orano’s Niger Uranium Operations Face Prolonged Shutdown Amid Power Struggle
French nuclear fuel giant Orano anticipates a protracted delay in restarting its uranium production site in Niger following a standoff with the country’s ruling military junta. The dispute has led to Orano relinquishing operational control of its mining subsidiaries in Niger and removing them from its financial statements.
Background:
Orano has been extracting uranium in northern Niger since 1971. The company’s Somaïr subsidiary operates a mine and uranium concentrate production plant, while its other subsidiaries, Cominak and Imouraren, have closed in recent years.
Standoff with Junta:
The current standoff stems from the military junta’s intervention in the governance and operations of Orano’s Niger-based subsidiaries. Orano holds majority stakes in these subsidiaries: 63.5% in Somaïr, 69% in Cominak, and 63.5% in Imouraren.
The junta’s actions, according to Orano, include:
- Blocking exports of approximately 1,300 tonnes of uranium concentrate valued at 250 million euros
- Refusing to authorize payment of salaries and supplier invoices
Financial Turmoil:
As a result of the standoff, Somaïr is facing financial ruin. CEO Nicolas Maes stated that the company is effectively bankrupt and lacks the revenue to resume operations.
Prolonged Restart Timeframe:
Maes estimated that restarting the Somaïr site could take "almost two years," even if necessary conditions are met. He emphasized that uranium reserves at the site extend for about 20 years.
Communication Breakdown:
According to Maes, communication with authorities has been severed since the military coup in July 2023. He criticized the junta for its "systematic refusal of dialogue" and lamented the "human and financial tragedy" that the situation represents.
Junta’s Objectives:
The military regime in Niamey has emphasized its commitment to sovereignty, including greater control over the exploitation of natural resources by foreign companies. In June, the junta revoked Orano’s mining license for the massive Imouraren deposit.
Implications for Orano:
Orano will no longer consolidate its subsidiaries in Niger in its financial results. The company has already recorded an impairment charge of 746 million euros related to the subsidiaries.
Future of Niger’s Uranium Industry:
The standoff between Orano and the military junta has raised concerns about the future of Niger’s uranium industry. The country is one of the world’s largest uranium producers, and the industry is a significant employer and source of revenue.
The outcome of the dispute is uncertain. Orano has indicated its willingness to negotiate, but the junta has made clear its intention to assert greater control over the uranium sector. The resolution of the standoff will have implications for both the industry and the country as a whole.
