French nuclear fuel firm Orano announced on Wednesday that it will halt uranium production in Niger from October 31, citing a “highly deteriorated” operational environment. The decision follows a coup in July 2023 led by Abdourahamane Tiani, who has signalled a desire to overhaul regulations affecting foreign mining firms.
Orano’s mining subsidiary, Somair, is facing worsening financial difficulties, prompting the suspension of operations in the Artlit region, where it has been active since 1971.
Niger’s military government has shifted alliances, expelling French troops and strengthening ties with other juntas in Burkina Faso and Mali, as well as with Iran and Russia. As the world’s seventh-largest uranium producer, Niger’s geopolitical stance is significant amid changing global relations.
Orano reported that it could not export uranium due to Niger’s landlocked position and closed borders, particularly with coastal Benin. Efforts to negotiate solutions with Nigerien authorities, including a proposal to export uranium by air via Namibia, were left unanswered. Consequently, the production of uranium concentrate will cease, highlighting the challenges facing foreign mining operations in the region.
“Maintenance will continue, but there will be no more production,” she added.
Nigerien officials chose not to provide a statement regarding the issue. In June, Niamey revoked Orano’s permission to operate in one of the world’s largest deposits, Imouraren, which is estimated to hold 200,000 metric tonnes (220,000 US tons) of reserves.
On September 19, Niger’s Council of Ministers approved a preliminary decree to establish a state-owned company called “Timersoi National Uranium Company” but did not give details about the decision.