Niger junta seizes French nuclear giant Orano’s uranium mine

Niger’s military government took control of Orano SA’s uranium mine, escalating a standoff with the French nuclear-power company.

The junta took action after accusing Orano of violating its shareholder agreement by extracting more uranium than the allowed 63.4% stake in a local affiliate, according to cabinet meeting minutes published in the capital, Niamey, on Thursday. It also criticized the company for halting operations, repatriating French staff and signaling that it may sell off its assets.

The nationalization of the mine will allow for a “healthier and more sustainable management” and ensure Niger benefits more from its mineral wealth, according to the minutes.

Niger’s move is “yet a further step in the military authorities’ ongoing strategy to expel Orano from Niger,” Orano said in a statement on Friday. “Litigation is now Orano’s last possible recourse.”

“Steps taken against Western businesses will discourage investment in the region by Western companies, which will instead seek opportunities in friendlier countries, like Côte d’Ivoire,” Francois Conradie, a political analyst at Oxford Economics, said in an emailed note.

The mine seizure highlights the shift by military-led states in the Sahel region against Western interests after a series of military coups over the past five years.

The governments of Niger, Mali and Burkina Faso expelled French and European troops while simultaneously deepening economic and security ties with countries including Russia and Turkey.

Canadian miner Barrick is battling to retain control of its Loulo-Gounkoto gold complex in Mali, where the junta placed the mine under state administration this week over a tax dispute. In November, the authorities detained the chief executive officer and two staff at Australia’s Resolute Mining, releasing them only after reaching a $160 million settlement with the company.

The soldiers that took power in recent years have also overhauled mining codes and renegotiated contracts while stepping up pressure on foreign firms, promising greater sovereignty and a fairer distribution of revenue from the lucrative industry. Mali’s military regime says the changes have generated more than 700 billion CFA francs ($1.2 billion) in revenue.

Gold mining accounts for a quarter of Mali’s budget, while in Burkina Faso it contributes about 14% of state revenue. Niger had about 6% of the world’s uranium resources in 2023, ranking among the top 10 sources of the fuel, according to the World Nuclear Association.

In December, Orano confirmed Niger had taken operational control of Somair, months after the junta canceled its license for the nearby Imouraren project. Orano is pursuing multiple international arbitration cases and filed a new legal complaint last month after Nigerien security forces raided its offices and detained the company’s local manager.

(By Katarina Höije)