The French group Orano (formerly Areva) has lost the operating permit for the Imouraren uranium extraction site. But its battle against the Nigerien junta led by General Abdourahamane Tiani looks to be far from over.

By mid-June, Orano’s crisis in Niger spread all the way to Paris, where tense exchanges between various stakeholders were reported during the Société des Mines de l’Aïr (SOMAIR)’s board meeting. Unable to reach an agreement, the meeting was interrupted prematurely, according to our sources.

Uranium sold behind authorities’ backs?

Tensions reportedly escalated over provisions for mine site remediation. Every year, Orano sets aside funds to finance the “post-mining phase”, including site rehabilitation after all exploitable ore has been extracted, to ensure a safe, non-polluting environment.

With these funds, the French group has been redeveloping the Compagnie Minière d’Akouta (COMINAK) site since 2021. The provisions are mostly financial but can also, temporarily, be paid through a portion of the group’s mining production.

During the meeting with Orano, Nigerian government representatives learned that in recent months, the group had sold uranium normally reserved as a provision.

This occurred in a difficult context: SOMAIR has been experiencing operational and financial difficulties since the July 2023 coup, which led the Economic Community of West African States (ECOWAS) to impose sanctions on Niamey’s military regime. Could Orano have made this sale without Nigerien authorities’ knowledge?

“It looks like an argument created during the meeting to contest Orano’s management,” says an industry specialist. “The issue of post-mining provisions has been a recurring source of tension between Orano and Nigerian authorities, even before General Tiani’s junta took power.”

Who gets €8.5bn provisions for restoration of sites?

The provisions reach very significant sums. In its 2023 annual report, Orano indicates that the total “for end-of-cycle operations” worldwide amounts to more than €8.5bn ($9.2bn).

Niger represents a minority share of the group’s activities, which operates uranium mines in Kazakhstan and Canada, but processes this ore in France. The report specifies that in 2023 alone, €19m ($20.6m) was set aside for mining site redevelopment.

Niger has reportedly asked several times to be paid for the provisions corresponding to the restoration of sites on its territory. Orano has never agreed. This new episode further weakens the French group’s interests in Niger.

Since the military coup and the closure of borders with Benin, SOMAIR has been operating at a reduced pace. “SOMAIR is facing major cash flow difficulties,” a former Orano executive tells The Africa Report.

“The company can no longer buy inputs for ore processing products. The uranium already produced remains stored in Niger without being sold. Given the situation, SOMAIR can no longer borrow on the banking market as it used to.”

To break the deadlock, Orano has proposed two options to the junta:

• Export uranium from Arlit using direct flights to bypass the closure of land borders with neighbouring Benin.
• Orano, which owns an unexploited mining site in Namibia, could transit uranium through this country before exporting it to France.

Irreversible consequences?

Since the 27 July 2023 coup, Nigerien authorities have not issued any export permits to SOMAIR, which require renewal every three months. In the absence of a solution, Orano has threatened to close the mine.

If this were to happen, the consequences would be irreversible for some Nigerien companies, such as the Société Nigérienne du Charbon (SONICHAR). Located 60km from the city of Agadez, this plant supplies electricity to the Arlit uranium mine and powers the strategic city.

“If SOMAIR closes, SONICHAR risks losing its two biggest customers,” says a source close to the matter.

After Imouraren, the future of the large Arlit uranium deposit, 63.4% owned by Orano and 36.6% by the State of Niger through Société du Patrimoine des Mines du Niger (SOPAMIN), is hanging in the balance.