French nuclear fuels group Orano has announced the loss of operational control over its Somair uranium mine in Niger, citing interference by Nigerien authorities and governance breakdowns at the site.
The development marks the latest challenge for foreign companies operating in the West African nation amid a deteriorating political and business climate.
Orano, which owns a majority stake of over 60% in Somair, disclosed on Wednesday that board decisions are no longer being observed.
This follows months of escalating tensions and a suspension of uranium production last year after Niger halted exports, Reuters first reported.
In a statement, the Paris-based company highlighted a November 12 resolution by Somair’s board to curtail production expenditures, preserving funds for salaries in light of strained financial conditions. Orano claims that this resolution is being ignored, with production-related spending continuing unchecked.
“The continuation of production expenses is further exacerbating the financial difficulties of the company,” Orano said.
Niger is a significant player in the global uranium market, contributing approximately 4% of worldwide output. Uranium is a critical input for nuclear energy, and the country has long been a key supplier for Orano. At full capacity, Niger accounted for about 15% of Orano’s uranium needs.
What we know
However, the country’s military coup in 2023 has introduced uncertainty for foreign operators, including Orano, which has faced growing difficulties in maintaining its presence and control.
- While the suspension of exports from Niger has disrupted traditional supply chains, Orano has sought to mitigate the impact by ramping up production at its mines in Canada and Kazakhstan. The company asserts that these adjustments have fully offset the shortfall from Niger, ensuring continuity in uranium supply.
- The challenges facing Orano in Niger show broader risks to foreign investment in regions where political instability threatens established agreements. For Orano, whose operations are critical to fueling nuclear power plants worldwide, the loss of control in Niger represents a significant operational and strategic setback, even as the company leans on its diversified global portfolio to maintain resilience.
As Niger’s domestic policies evolve under military rule, the future of foreign enterprises like Orano remains uncertain. For now, the French nuclear group continues to monitor the situation, though prospects for a resolution appear increasingly complex.
