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TimesLIVE
a day ago
- Business
- TimesLIVE
France's Orano says its Niger uranium mine on verge of bankruptcy
French uranium miner Orano said on Wednesday its majority-owned joint venture with Niger, SOMAIR, is on the verge of bankruptcy as a result of export restrictions imposed by Niger's military government. Orano was forced to suspend production at SOMAIR after authorities halted exports last year. Niger's government seized the operation in December and announced plans to nationalise it last month, joining a wave of West African governments seeking greater control of natural resources from foreign companies. Niger, which also exports gold and coal, is the world's seventh-largest uranium producer. The country accounted for about 15% of Orano's uranium supply when its local unit operated at full capacity. Orano told Reuters in emailed responses to questions that it had been flagging SOMAIR's worsening financial position since October as its year-long dispute with the West African nation escalated. "The Nigerien authorities' insistence on continuing production expenses at any cost has led to the current situation where the SOMAIR company is on the verge of bankruptcy," Orano said. Niger's ministry of mines did not immediately respond to a request for comment on Orano's assessment of the unit's financial position.
Business Insider
2 days ago
- Business
- Business Insider
France's nuclear giant says its Niger uranium mine is nearly bankrupt
French uranium miner Orano has warned that its majority-owned joint venture in Niger is nearing bankruptcy. French uranium miner Orano highlights SOMAIR's financial distress due to Niger's export restrictions post-military coup. Niger, producing 4% of global uranium, crucially supplies Orano but now faces political change affecting mining operations. In December, Orano lost operational control of SOMAIR, now nationalized by Niger amidst Western-regional tensions. French uranium miner Orano has warned that its majority-owned joint venture in Niger, SOMAIR, is nearing bankruptcy following nearly a year of export restrictions imposed by the country's military-led government. Niger, responsible for approximately 4% of global uranium output, has long been a key supplier for Orano, a significant player in the nuclear energy sector. Last December, the French nuclear fuel company reported it had lost operational control of the SOMAIR mine due to governance challenges and growing interference from Nigerien authorities, who have since taken over the site. In June, Niger formally announced plans to nationalize the operation, part of a broader shift across West Africa, where governments are increasingly asserting control over natural resource assets. "Faced with this irresponsible, illegal, and unfair behaviour by Orano, a company owned by the French state, a state openly hostile toward Niger since July 26, 2023 ... the government of Niger has decided, in full sovereignty, to nationalise Somair," Niger's statement read. When operating at full capacity, Niger accounted for roughly 15% of Orano's uranium supply. However, Orano said it had been flagging SOMAIR's worsening financial health since October as its dispute with the government escalated, according to Reuters. The company accused Nigerien authorities of forcing continued spending on production despite the halt in exports, pushing the venture toward insolvency. 'The Nigerien authorities' insistence on continuing production expenses at any cost has led to the current situation where the SOMAIR company is on the verge of bankruptcy,' Orano said. The military junta, which took power in 2023, defended its decision to nationalize the mine by accusing Orano of extracting 86.3% of uranium output since 1971, despite officially holding only a 63% stake in SOMAIR. The company also criticized Niger's state-owned partner SOPAMIN, accusing it of shirking its responsibilities during periods of low uranium prices by refusing its share of production 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. Resource power play The dispute over SOMAIR comes as Niger repositions itself geopolitically. The country recently ended its longstanding defence pact with France and is increasingly aligning with Russia and Turkey, nations eager to gain access to Niger's rich mineral deposits, including uranium, gold, and coal.
Reuters
2 days ago
- Business
- Reuters
Exclusive: France's Orano says its Niger uranium mine on verge of bankruptcy
DAKAR, July 2 (Reuters) - French uranium miner Orano said on Wednesday its majority-owned joint venture with Niger, SOMAIR, is on the verge of bankruptcy as a result of export restrictions imposed by Niger's military government. Orano was forced to suspend production at SOMAIR after authorities halted exports last year. Niger's government seized the operation in December and announced plans to nationalize it last month, joining a wave of West African governments seeking greater control of natural resources from foreign companies. Niger, which also exports gold and coal, is the world's seventh-largest uranium producer. The country accounted for about 15% of Orano's uranium supply when its local unit operated at full capacity. Orano told Reuters in emailed responses to questions that it had been flagging SOMAIR's worsening financial position since October as its year-long dispute with the West African nation escalated. "The Nigerien authorities' insistence on continuing production expenses at any cost has led to the current situation where the SOMAIR company is on the verge of bankruptcy," Orano said. Niger's Ministry of Mines did not immediately respond to a request for comment on Orano's assessment of the unit's financial position. 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 nationalization plans. Neighbouring military-ruled Mali has also put Barrick's ( opens new tab 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.
