- Loss of Operational Control: Orano has lost control of its SOMAÏR uranium mine in Niger, with the Nigerien government taking over amid increasing pressure on foreign investors following a military coup.
- Governance and Licensing Challenges: Orano’s board decisions are being ignored, worsening its financial situation, and the company has faced additional licensing issues, including the revocation of its Imouraren mining permit in June.
- Geopolitical Shifts and Response: Niger is shifting alliances, ending its defense pact with France and seeking ties with Russia and Turkey, while Orano has ramped up production in Canada and Kazakhstan and plans to defend its rights to resume operations at SOMAÏR .
Orano, a major French nuclear fuels company, announced on December 4 that it has lost control of its SOMAÏR uranium mine in Niger. Authorities in Niger have taken operational control of the mine, as the military-led government intensifies pressure on foreign investors. The business environment in the country has become increasingly unstable following a military coup in July 2023.
Niger, which accounts for 4% of global uranium supply, had previously provided Orano with roughly 15% of its uranium when the mines were operating at full capacity. Orano owns 63% of the SOMAÏR mine, with the remaining 37% controlled by the Nigerien government. Production at the mine had already been suspended after the West African country halted uranium exports last year.
Orano confirmed that the decisions made at the SOMAÏR board meetings are no longer being implemented. On November 12, the board at SOMAÏR resolved to suspend production-related expenditures in order to preserve funds for salaries. However, this decision has been deliberately ignored, subsequently worsening the company’s financial situation.
For months, Orano had warned about interference in SOMAÏR’s governance. Besides operational disruptions, the company has faced significant licensing issues in Niger. In June, Niger revoked the mining permit for Orano’s Imouraren mine. And in July, Canadian company GoviEx Uranium also lost its rights to the Madouela uranium project in the country.
In response to these disruptions, Orano has increased uranium production at its mines in Canada and Kazakhstan. The company has expressed its intent to “defend its rights before competent bodies” in order to resume normal operations at SOMAÏR.
Niger’s geopolitical landscape has gravely shifted. The country has ended its defense pact with France and is seeking stronger ties with Russia and Turkey, both of which are interested in Niger’s valuable mineral resources. Meanwhile, neighboring military-led governments in Mali and Burkina Faso are also seeking greater control over their resources, as Russian influence in the region continues to grow.
