French nuclear multinational Orano has announced that it will suspend production at its Arlit uranium mine in northern Niger due to financial difficulties faced by its Nigerien subsidiary, Somaïr. This decision follows border closures between Niger and Benin, imposed after the July 2023 coup, which have halted all uranium exports.
The Arlit uranium mine is operated by Somaïr, Orano’s local subsidiary, in which Orano holds a 63.4 percent stake, with the remainder owned by Niger’s state-run Sopamin.
Orano revealed on Wednesday that it would cease operations at the mine from 31 October, citing Somaïr’s worsening financial situation.
The closure of the primary export route between Niger and Benin has left 1,050 tonnes of uranium concentrate from the 2023 and 2024 stockpiles stranded. Orano estimates the value of the blocked uranium at €300 million, nearly half of the mine’s average annual production.
The company stated that it had explored various options to facilitate uranium exports, including airlifting the material via Namibia. However, “all proposals made to the Nigerien authorities have remained unanswered,” Orano said.
Although the suspension is described as a “temporary measure”, Orano expressed concern over the impact on Somaïr’s workforce and subcontractors. The site employs 780 workers and an equal number of subcontractors, 99 percent of whom are Nigerien. Workers will continue to receive their wages until 31 December 2024.
The suspension comes amidst growing tensions between France and Niger. The military junta, which took control in July 2023, expelled French troops in December, who had been stationed to combat Islamist militants. In June, the junta also revoked Orano’s licence to operate the Imouraren mine, one of the world’s largest uranium deposits, which resulted in a €133 million loss in the first half of the year.
Last month, Niger’s Council of Ministers announced the establishment of the state-run Timersoi National Uranium Company (TNUC), although its precise role remains unclear.
Orano, formerly known as Areva, has been operating in Niger since 1971 and still owns three mines in the country. However, Somaïr was the last of these still in production.
Despite the disruption in Niger, Orano assured that its uranium supply remains secure, pointing to alternative sources in Canada and Kazakhstan. France’s EDF, which relies on 8,000 tonnes of uranium annually to power its 56 nuclear reactors, is not expected to face shortages.
