French nuclear fuel company Orano issued a warning regarding a “deteriorating financial situation” at its Somair uranium plant in Niger, as the West African nation’s mining sector faces increasing instability. This comes as Niger explores new international partnerships, particularly with Russia, following a military coup last year that has created uncertainty for foreign businesses.
Niger is one of the world’s largest producers of uranium, which is the primary fuel for nuclear energy, and Orano has long been a major player in the country’s uranium sector. However, the political and business environment in Niger has become more challenging since the coup, which has disrupted trade routes and created tensions between the country and Western governments, including France.
In October, Orano had to suspend production at its Somair mine in northern Niger, following the closure of the main export corridor. In its latest statement, the company clarified that it had made the decision to temporarily halt mining and ore processing expenditures at the site in order to preserve cash for essential costs, such as paying employee salaries. Orano owns more than 60% of the Somair mine, while Niger’s state-owned Sopamin holds the remaining stake.
Despite these measures, Orano stressed that this was not a closure or suspension of operations, but rather a temporary halt on non-essential spending given the current circumstances. The company emphasized that its goal was to maintain the site’s operations while navigating the uncertain business environment.
Adding to the strain, Niger’s Minister of Mines, Colonel Abarchi Ousmane, recently made comments that further raised tensions. In an interview with Russian media RIA, Ousmane questioned the future of French companies in Niger’s mining sector, citing the French government’s refusal to recognize Niger’s current military-led authorities. “Does it seem possible for us, the state of Niger, to allow French companies to continue extracting our natural resources?” Ousmane remarked.
The minister’s comments were interpreted by Orano as damaging, particularly as they followed remarks made earlier this week to RT media, in which he insisted that Sopamin had not agreed with Orano’s decision to suspend production. According to Ousmane, production at the Somair mine was still ongoing despite the financial difficulties.
This growing tension reflects broader shifts in Niger’s mining sector, as the country increasingly looks to new international partners, including Russia, for investment and cooperation in the wake of deteriorating relations with former colonial power France.
As the situation in Niger continues to evolve, the future of Orano’s operations at Somair and its broader involvement in the country’s uranium industry remains uncertain.
