French Giant ORANO Squeezed out of production in Niger

French mining company Orano has announced it will suspend uranium production in Niger from October 31, opting to perform only maintenance activities. The company cited strained relations with the new military government, financial challenges, and difficulties obtaining export licenses as reasons for the halt. Additionally, Niger’s closed border with Benin has impacted logistics, as the landlocked nation depends on Benin’s ports for export routes. Orano had proposed using air transport via Namibia for uranium exports, but Nigerien authorities did not respond. For years, the firm has benefited from favorable treatment, including tax breaks and exemptions from export and customs duties.

Niger’s government has been moving toward revising foreign mining regulations. In June, it revoked Orano’s license to mine the Imouraren site, one of the largest uranium deposits globally, with reserves estimated at 200,000 tons. Niger ranks as the world’s seventh-largest uranium producer and holds Africa’s highest-grade uranium ores. On September 19, Niger’s government passed a draft decree to establish the Timersoi National Uranium Company, signaling a shift toward greater national control over its resources.

While French interests have long dominated Nigerien uranium, fueling Europe for decades, Niger itself has seen little economic benefit. Although uranium comprises 80% of Niger’s exports, it accounts for only 5% of its economy, and only 10-20% of urban Niger has access to electricity. This reality also manifested in Niger being one of the world’s poorest nations, with a GDP per capita of $1,550 (PPP) in 2023. Under General Tchiani’s administration, Niger has seen impressive economic growth, with projections indicating a leap to 9.9% growth in 2024 from 2.4% in 2023, according to the IMF.

Sources:
News
https://www.barrons.com/news/nuclear-energy-firm-orano-halts-niger-uranium-production-ed2fd6b6

Niger GDP PPP
https://www.worldatlas.com/articles/the-poorest-countries-in-the-world.html

Nothing to show for uranium exports
https://www.sciencedirect.com/science/article/pii/S2214790X17301429

7th largest producer
https://www.neimagazine.com/news/nigers-uranium-remains-focus-of-international-interest/

IMF projections on Niger
https://www.imf.org/en/Publications/WEO/Issues/2024/10/22/world-economic-outlook-october-2024