French nuclear group Orano has said more than 1,500 tonnes of uranium are stockpiled at the Somaïr mine in northern Niger, and that it will seek compensation if the material is seized or sold without authorisation. This stockpile is valued at roughly $270m at current market prices.
Orano launched arbitration at the World Bank’s International Centre for the Settlement of International Disputes (ICSID) in January after Niger’s military government blocked operations at Somaïr before moving to nationalise it.
Somaïr, founded in 1968, began operations in 1971 in Arlit, in the Agadez region. Somaïr was a joint stock company under Nigerian law, 63.4% owned by Orano and 36.6% by the Société du Patrimoine des Mines du Niger (Sopamin).
In the summer of 2023, a coup d’etat in Niger put in place a military government, which reviewed foreign mining concessions and suspended the granting of new mining licences, ordering an audit of the sector. French military troops were expelled in December 2023 after which relations with France rapidly deteriorated. The military government has defended nationalisation of Somaïr, accusing Orano of extracting 86.3% of uranium output since 1971 despite holding only a 63% stake.
At the recent UN General Assembly, Niger Prime Minister Ali Lamine Zeine accused foreign firms of decades of exploitation, saying uranium had brought “misery, pollution, rebellion, corruption and desolation” to Nigeriens while enriching France.
ICSID issued an interim order in September prohibiting Niger from selling or transferring uranium that had been mined before the military government suspended operations. The ruling leaves unresolved questions about uranium produced after the takeover. If Niamey violates the ruling, Orano would be entitled to seize assets or royalties owed to Niger abroad. However, the ICSID may not issue its final decision for months or even years.
Niger is the world’s seventh largest producer of uranium and has the highest-grade ores on the African continent. Before the dispute, Niger’s uranium production accounted for 4.7% of global supply. For Orano specifically, Niger’s mines represented approximately 15% of their global uranium supplies when operating at full capacity. In 2022, Niger provided more than a quarter of the uranium used in the European Union, the second biggest supplier after Kazakhstan, according to Euratom.
