Uranium: Orano temporarily suspends its extraction expenditure in Niger

Suspension linked to political and economic tensions

French uranium giant Orano has announced the temporary suspension of mining and processing expenses at its Nigerien subsidiary Somaïr . This decision, adopted at the board of directors on November 12, aims to preserve cash flow to prioritize the payment of salaries and maintain the essential functions of the industrial site, while waiting for the resumption of exports and marketing.

This suspension comes in a context marked by:

• The withdrawal in June of a major exploitation permit by the Nigerien junta for the Imouraren deposit, one of the largest in the world.
• The impossibility of exporting uranium due to the closure of the border between Niger and Benin, justified for security reasons by Niamey.

A dispute between Orano and the Nigerien authorities

In early October, Orano had already suspended its production in Niger, citing Somaïr’s growing financial difficulties . However, the ruling junta, which came to power in July 2023, contested this decision, accusing Orano of not having consulted it.

Currently, nearly 1,050 tonnes of uranium concentrate , or half of the site’s average annual production, are blocked . Their market value is estimated at 300 million euros .

Niger questions historical partnerships

Faced with this situation, the junta has expressed its willingness to review the terms of exploitation of natural resources by foreign companies. It is also turning towards new partners, notably Russia and Iran.

At the Russia-Africa summit in Sochi, Niger’s Minister of Mines, Colonel Ousmane Abarchi , said:

“We have already met with Russian companies interested in exploring and exploiting natural resources in Niger.”

Orano maintains its priorities despite growing tensions

In its press release, Orano explained that the suspension of expenditure would allow wage payments to be maintained and ensure the vital operation of the site for as long as possible . However, the abstention of Sopamin (Nigerian public partner) during the vote reflects the growing divergences between the two parties.

Conclusion: Persistent uncertainty surrounding the future of Nigerian uranium

The suspension of Orano’s activities in Niger symbolises the challenges posed by geopolitical and economic tensions in the region. As the country seeks to diversify its partners and review the rules for collaboration with foreign companies, the future of Nigerien uranium mining remains uncertain, highlighting the impacts of transitional governance on extractive industries.