French nuclear fuels group Orano has announced that it has lost operational control of its Somair uranium mine in Niger, citing interference from Nigerien authorities and a breakdown in governance at the site.
This marks a significant challenge for foreign companies operating in the West African nation, as political and business conditions continue to deteriorate.
Orano, which holds a majority stake of more than 60% in Somair, revealed on Wednesday that board decisions are no longer being implemented, a situation that follows months of escalating tensions and a suspension of uranium production last year after Niger halted exports.
In a statement, the Paris-based company noted that a resolution passed by the Somair board on November 12 to curb production expenses and safeguard funds for salaries in light of financial pressures has been ignored. Orano claims that production-related spending continues unabated, exacerbating the company’s financial difficulties.
“The continuation of production expenses is further worsening the company’s financial strain,” Orano said in its statement.
Niger plays a vital role in the global uranium market, contributing about 4% of global production. Uranium, a key resource for nuclear energy, has made the country an important supplier for Orano. Before the disruption, Niger accounted for approximately 15% of Orano’s uranium needs.
However, following Niger’s military coup in 2023, foreign companies, including Orano, have faced increasing challenges in maintaining operations and control in the country. While the suspension of uranium exports has disrupted traditional supply chains, Orano has compensated for the shortfall by ramping up production at its mines in Canada and Kazakhstan, ensuring continuity in uranium supply.
The difficulties faced by Orano in Niger highlight broader risks for foreign investment in politically unstable regions. For Orano, which plays a key role in powering nuclear plants worldwide, losing control in Niger is a significant operational setback, despite its diversified global portfolio helping to buffer the impact.
