In its decision to nationalise the mine, the junta, which seized power in 2023, said Orano had been extracting 86.3% of uranium production since 1971 despite holding a 63% stake in the mine.
The country’s main mineworkers union, which said production will continue at the mine, said Orano had carried out acts of sabotage, adding Niger’s uranium exploitation had not fairly benefited the country. Orano denies the accusations.
Orano said Niger’s state-owned partner SOPAMIN had engaged in opportunistic behavior by refusing to take its share of production during low uranium price cycles to avoid losses.
“The state of Niger did not always exercise its offtake rights for several periods… particularly in low uranium price cycles”, forcing Orano to purchase additional uranium above its shareholding to keep the mine financially viable, the company said.
Orano said it wanted the venture’s remaining financial resources to be used to pay employees’ salaries and to maintain industrial facilities.
Uranium spot prices are up 7% so far this year, having hit a seven-month high of $79 a pound last week.
The company, which said it reserves the right to legal action, did not specify its next steps as Niger moves forward with nationalisation plans.
Neighbouring military-ruled Mali has also put Barrick’s Loulo-Gounkoto gold complex under state control, while Burkina Faso and Guinea have pressed Western miners for greater mining share while pivoting to Russian interests.
Reuters