Niger Junta takes control of French uranium firm’s operations

French nuclear company Orano announced on Wednesday that the military junta in Niger has taken “operational control” of its uranium mining operations, escalating tensions between the company and the country’s new rulers.

Orano had previously suspended production at its local unit, Somair, in northern Niger, citing worsening operational conditions and financial difficulties. The suspension followed a series of disputes between the company and the junta, which came to power in a coup in July 2023. The junta has made it clear it intends to overhaul the regulations governing foreign companies’ access to Niger’s raw materials, including uranium, of which Niger is the world’s seventh-largest producer.

In June, the junta revoked Orano’s permit to operate Imouraren, one of the largest uranium deposits globally, with an estimated 200,000 tonnes of uranium. Then, in late October, Orano suspended activities at its Somair mine in Arlit due to increasing challenges, including the closure of Niger’s border with Benin, which has blocked uranium exports for what the government calls security reasons.

Orano holds a 63.4% stake in Somair, while the Nigerien state owns the remaining 36.6%. In its statement, Orano expressed concern over what it described as growing interference in Somair’s governance, noting that the decisions made by the company’s board were no longer being implemented.

“For several months, Orano has been warning of the increasing interference in Somair’s management,” the company stated, adding that the junta has now taken control of operations.

The escalating dispute is part of a broader deterioration in relations between Niger and its former colonial power, France, with Niger shifting its foreign policy towards new alliances, including Russia and Iran. Last month, Niger’s Mining Minister, Ousmane Abarchi, invited Russian companies to invest in the country’s uranium and other natural resources.

Orano also revealed that its board had decided on November 12 to suspend production-related expenses to focus on paying employees and maintaining the mine’s infrastructure. However, shortly thereafter, junta advisors visited the Somair site to pressure the company to continue operations, despite the board’s decision.

“The board’s decision to halt production expenses is being actively obstructed, further deepening the company’s financial losses,” Orano stated. The company also reported that 1,150 tonnes of uranium concentrate, valued at about 200 million euros, is being blocked from export, exacerbating the financial strain.

Orano expressed regret over the situation, noting the growing burden on its employees and local communities. “Orano is committed to defending its rights through the appropriate channels and believes that only a collaborative effort to restore stability will allow Somair to resume operations under peaceful conditions,” the company concluded.