French nuclear fuels company Orano announced on Wednesday that it has lost control of its Somair uranium mine in Niger, citing governance issues and interference by Nigerien authorities, who have taken control of the operation.
The company, which owns more than 60% of Somair, had already suspended production after Niger halted uranium exports last year, according to Reuters.
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. However, the situation for international companies in the country has grown increasingly precarious following a military coup last year.
Orano revealed that the Somair board’s recent resolution on November 12, which aimed to suspend production-related expenditures to safeguard funds for salaries, is being deliberately disregarded.
The company had been warning for months about interference in Somair’s governance.
“The production expenses that continue on the site are further deteriorating the company’s financial situation,” it said in a statement.
When operating at full capacity, Niger accounted for roughly 15% of Orano’s uranium supply. Despite the disruption, Orano has managed to compensate for the loss by increasing production at its mines in Canada and Kazakhstan.
Recently, Niger has shifted its focus towards a new alliance, officially ending its defense pact with France. The country is now looking to strengthen its ties with Russia and Turkey, both of which are keen to tap into Niger’s abundant mineral resources.
Meanwhile, neighbouring military-led governments in Mali and Burkina Faso are also vying for greater control of their resources, as Russia’s influence in the region continues to expand.
