Uranium coveted in Niger: between games of influence and rivalries of powers

In May 2024, the media made public a plan for Iran’s acquisition of nearly 300 tons of “yellow cake” Niger, uranium concentrate used as fuel for power plants as well as for the manufacture of nuclear weapons. The disclosure of this agreement, concluded clandestinely between the Islamic Republic and the ruling junta, has greatly revived the concerns of the United States and Western chancelleries. Beyond concerns about the progress of the Iranian nuclear program, this “affair” above all highlights the desire that Niger’s uranium arouses among many foreign powers. Who are they ? Where are they present and for what purpose?

France, a historic actor

The first uranium mines in Niger began to be exploited by a French company, the ancestor ofOrano (ex-Areva), in 1971 in Arlit, in the north of the country. Orano is historically present on the Aïr open-cast mine, operated by the Air Mining Company (Somair), of which the French group holds 63.4% of the capital shares and SOPAMIN (Niger) 36.66%. Orano is currently working on its extension beyond 2035. The Akouta underground mine operated by the Akouta Mining Company (COMINAK) and 59% owned by Orano31% by SOPAMIN and 10% by the Spanish company Enusa ended its activities in March 2021. After 47 years of operation, it had reached the exhaustion of its resources.

In 2009, Orano obtained an exploitation permit for the Imouraren deposit, located 80 km south of Arlit. According to feasibility studies, it is one of the sites containing the world’s largest reserves. The operating company, Imouraren SAis 63.52% owned by Orano33.35% by SOMAPIN and 3% by KHNP. However, this project has been on hold since 2015. If the Imouraren deposit is one day exploited, using an innovative technology, called suction extraction (In situ recovery), this could produce more than 174,000 tonnes of uranium, out of an annual capacity of 5,000 tonnes, for 43 years. According to Matthieu Davrinche, director of Imouraren SApilot tests could start during the year 2024, with a view to deciding, within the next four years, whether or not to exploit this deposit, mobilizing nearly 85 million euros of investment on the part of the French group.

For several decades, France remained the only foreign power to exploit uranium mines in Niger. From the mid-2000s, the situation evolved and new players appeared in this increasingly strategic sector on an international level: China, Canada and indirectly the United States and Iran today.

New competitors

China made its appearance in this economic sector, in Niger, from 2007, when the Azelik Mining Company (Somina), majority owned by China National Uranium Corporation (CNUC). The Azelik mine was active between 2011 and 2014, the year when China decided to suspend extraction due to the significant drop in world prices of the yellow cake. Since then, they have multiplied by 5, today approaching 100 dollars per pound of uranium. This increase in prices led in June 2023 to the signing of a memorandum of understanding between the CNUC and the State of Niger, to relaunch the SOMINA.

Canada, one of the largest producers of uranium in the world, also covets this strategic resource from Niger, via two mining companies: Global Atomic Corporation (GAC) and GoviEx. In December 2020, the first obtained a permit to exploit the deposits of the DASA project, for an initial period of 10 years. Activities at this mine began in 2022. In September of that same year, GoviEx announced that it would be able to start operating the Madaouela mine by 2025. According to the results of feasibility studies made public by the group, it plans uranium production of nearly 20 million tonnes over 19 years . So far, the group has invested just under $343 million in this project.

GAC discovered the first deposits of the DASA project between 2007 and 2010. Three other potential sites will be the subject of subsequent feasibility studies. According to information communicated on its website, the Canadian company estimates that uranium production on DASA should reach more than 68 million tonnes during the expected 23 years of activity. The Canadian company plans to commission the processing plant in the first quarter of 2026. GAC would hold approximately 90% of the shares in the Société Minière de Dasa SA, the rest belonging to the State of Niger. Since 2007, more than 50 million US dollars have been invested in this project.

Thanks to the rise in world uranium prices, the new Nigerien authorities intend to make greater use of this national wealth in order to capture foreign currencies. They could be tempted to sell it to the highest bidder, including Iran. Although Niamey and Tehran deny any talks in this direction, in February 2024, Mahdi Safari, Iranian deputy minister of foreign affairs, visited the Nigerien capital and notably mentioned his country’s desire to acquire part of this ore. Officially, Niger would have refused such an agreement on the grounds that it did not have available stock. Two months later, the putschist regime threatened to suspend, by July 2024, the exploitation permits for the Imouraren and Madaouela deposits, exploited respectively by Orano And GoviEx. In the event that this ultimatum is implemented, these permits could be allocated to other actors…

Competition over uranium worries the United States

If the United States and probably Canada are particularly worried about the arrival of Iran as a potential client of the ” yellow cake » Nigerien, questions arise about the reasons for these. The Islamic Republic’s nuclear program may not be the only reason. Indeed, the DASA project is partly financed by the agencies of Export credit of Canada and the United States and the United States Development Bank. Washington would also support this project. At least two North American utilities have expressed interest in acquiring part of the uranium mined at DASA. Furthermore, a European nuclear energy operator has also applied, according to the GAC website. Faced with the geostrategic challenges represented by the supply of “ yellow cake », the United States is closely watching the evolution of the political-economic situation in Niger. Last March, the US House of Representatives passed theAtomic Energy Advancement Act, intended to accelerate the development of new generation nuclear reactors on American soil. However, to supply them, the United States will need to increase its stock of uranium.

Demands to decarbonize global economies are accompanied by growing demand for energy. Consequently, global needs for enriched uranium will only increase, whether for civil or military programs. The issues linked to its extraction, production and marketing will accompany this development, the consequences of which on the economic war for this strategic mineral are only just beginning…

Julie Saché and Benjamin Liets

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