French nuclear fuel giant Orano has announced it has lost control of its Somair uranium mine in Niger, with the country’s authorities taking over the site. The company, which holds a majority stake of over 60%, revealed that key board decisions are no longer being followed, further escalating tensions.
In a statement released on Wednesday, Orano explained that it had warned for months about governance issues at Somair, which were exacerbated when production was suspended after Niger halted uranium exports last year. The disruption marks a significant blow for the company, which has operated mines in Niger for several years.
Niger, a country that contributes around 4% of global uranium output, has become increasingly uncertain for international companies following a military coup in 2023. The changing political climate has raised concerns over the future of foreign investments in the country’s mining sector.
Orano also disclosed that a November 12 resolution by the Somair board, aimed at curbing production-related spending to preserve funds for salaries, is being disregarded by local authorities. “Ongoing production expenses are worsening the company’s financial situation,” Orano stated.
At its peak, Niger accounted for approximately 15% of Orano’s uranium supply. However, the company has reported that the suspension of exports from Niger has been compensated by an increase in uranium production from its mines in Canada and Kazakhstan.
The situation underscores the growing challenges faced by international companies in Niger, as geopolitical instability continues to affect the mining industry in the region.