French nuclear company Orano has lost control of its Somair uranium mine in Niger, citing governance issues and interference from Nigerien authorities. This development marks another chapter in the strained relations between Niger and France following a military coup in the West African nation last year.
Niger, which accounts for approximately 4% of global uranium output, has been a critical supplier for Orano, a major player in the nuclear energy industry. Before the disruption, the country supplied roughly 15% of Orano’s uranium needs. However, the political landscape in Niger has grown increasingly unstable, challenging the operations of international firms.
Niger halted uranium exports in 2023, prompting Orano to suspend production at the Somair mine. The situation worsened on November 12, when the Somair board decided to suspend production-related expenditures to preserve funds for salaries. Orano claims this decision has been disregarded by Nigerien authorities, who have taken control of the mine’s operations.
In a statement, Orano expressed concerns over the mine’s financial health. “The production expenses that continue on the site are further deteriorating the company’s financial situation,” it said. The firm had issued warnings for months about interference in Somair’s governance.
Despite losing access to Somair, Orano has managed to offset the supply shortfall by ramping up uranium production at its facilities in Canada and Kazakhstan. While this diversification underscores Orano’s resilience, the loss of Niger as a reliable supplier highlights the geopolitical risks tied to critical resource production.
The fallout between Niger and France is not isolated to the mining sector. Niger’s military-led government recently ended a defense pact with France and has been pivoting towards new alliances with countries like Russia and Turkey. Both nations have expressed interest in Niger’s abundant mineral resources, further signaling a shift in the region’s political and economic dynamics.
This shift is mirrored in neighboring military-led governments, such as Mali and Burkina Faso, which are also seeking greater control over their resources. Russia’s influence in the region continues to expand, fueled by these changing alliances.
Niger’s political turmoil has created an increasingly hostile environment for international companies. Governance issues, resource nationalism, and geopolitical realignments have made it difficult for firms like Orano to maintain stable operations.
As the world transitions to cleaner energy sources, uranium remains a critical component for nuclear power. However, disruptions in Niger underline the fragility of supply chains in politically unstable regions, forcing companies to adapt quickly.
The developments in Niger are a stark reminder of the interplay between resource management and global geopolitics. For now, Orano and other international stakeholders must navigate a challenging landscape as Niger forges a new path in its post-coup era.
