Niger's State Miner Contests Orano's Uranium Processing Suspension, Statement Says
15:41 02.11.2024 (Updated: 16:14 02.11.2024)
CC BY-SA 4.0 / Mario Fourmy / French nuclear company Orano
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In late October, French miner Orano announced that Somair, its Nigerien branch, suspended uranium mining in the country from October 31 due to its worsening financial difficulties, inability to export uranium concentrate and because of restrictions such as the withdrawal of the operating license of Orano at the Imourarenone mine, reports said.
Niger's state mining company Sopamin contests the decision by French Orano miner to suspend uranium processing by its local Somair subsidiary at the Arlit mine, Sopamin's director Gaya Sabiou said in a statement.
Sopamin and Orano are the main shareholders of Somair, and the partnership agreements between them entitle each party to strategic guidance. Therefore, any decision concerning the future of Somair must be taken jointly by the two shareholders through the prism of a duly authorized body, Sabiou noted.
"In this case, despite its co-shareholder status, Sopamin was not consulted on this major decision," the statement read.
Orano's decision raises many questions and concerns as it lacks transparency and violates a number of principles and practices necessary to manage and fulfill obligations between stakeholders, the statement pointed out.
"Furthermore, at a time when the Niger State, with all responsibility and generosity, has decided to intervene to find funds for Somair by purchasing 210 tonnes of uranium through Sopamin, the idea of the above decision is untimely," Sopamin’s director said in the statement, adding that all necessary steps are being taken to settle the balance related to the purchase transaction.
Commenting on Orano's decision to suspend uranium extraction at the Arlit mine, a civil society representative specializing in extractive industries, Tchiroma Aissami, told Sputnik Africa about possible consequences of the move:
The expert predicts job losses for some employees working at the mine;
Somair, a joint venture between Orano, which has a share of 64%, and Niger with a 36% share, will stop paying taxes into Niger's budget;
The suspension of uranium mining could also affect Niger's GDP. For over a year now, they have not been able to export the uranate that they produce, Tchiroma Aissami noted, adding that the Arlit mine is not closed.
The export corridor through Benin is reportedly blocked due to the closure of the Niger-Benin border ordered by the Nigerian military authorities in 2023, making uranium exports impossible.
"It is our sincere hope that both parties will continue to discuss and exchange views and that this situation will be resolved to the benefit of all who benefit from the mine," Aissami concluded.
