French nuclear multinational Orano will suspend production at its Arlit uranium mine in northern Niger due to financial difficulties faced by its Nigerien subsidiary, Somaïr. The decision comes as border closures between Niger and Benin, triggered by the July 2023 coup, have blocked all uranium exports.
The Arlit uranium mine in northern Niger is operated by its local subsidiary Somaïr - Orano owns 63.4 percent and the Nigerien state-owned Sopamin the rest.
Orano, which owns 63.4 percent of Somaïr, announced on Wednesday that the company would stop operations from 31 October, citing Somaïr's worsening financial situation.
The closure of the main export corridor between Niger and Benin has left 1,050 tonnes of uranium concentrate from the 2023 and 2024 stockpiles stranded.
Orano estimates the value of the blocked uranium at €300 million, representing almost half of the site's average annual production.
Orano said it had explored various options to unblock exports, including airlifting uranium via Namibia. However, "all the proposals made to the Nigerien authorities have remained unanswered", the company said.
Despite describing the suspension as a "temporary measure", Orano expressed concern over the impact on Somaïr's employees and subcontractors.
The site employs 780 workers and an equal number of subcontractors, 99 percent of whom are Nigerien. Workers will continue to be paid until 31 December 2024.
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Strained relations
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The suspension comes amid deteriorating relations between France and Niger. The junta, which seized power in July 2023, expelled French troops deployed to fight Islamist militants in December.
In June, it also withdrew Orano's licence to operate the Imouraren mine, one of the world's largest uranium deposits, leading to a €133 million loss in the first half of the year.
Last month, Niger's Council of Ministers announced the creation of the state-run Timersoi National Uranium Company (TNUC), though details of its role remain unclear.
Orano (formerly Areva), which has been operating in Niger since 1971, still owns three mines in the country, but Somaïr was the last one still in production.
Despite the disruption in Niger, Orano assured that its uranium supply remains secure, pointing to alternative sources in Canada and Kazakhstan.
France's EDF, which relies on 8,000 tonnes of uranium annually to power its 56 nuclear reactors, is not expected to face shortages.
