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Niger says it will nationalize a large-scale uranium project owned in collaboration with French nuclear fuel producer Orano in a major escalation of tensions between the West African country’s military government and state-owned enterprises.
The nationalisation plan was announced late Thursday on state broadcasters after ministers adopted a resolution transferring full ownership of the Somaa Project to the government of Niamey. Orano owns just 63% of Somair, with Niger’s national sopamine holding the rest.
The nationalisation of Orano’s projects is part of a broader wave of asset attacks in the Sahel, a semi-arid strip south of the Sahara, with military management governments in Burkina Faso, Mali and Niger taking over international mining companies.
The Niger administration, which seized power in a coup in July 2023 after abdicated President Profrensh’s President Mohamed Bazoom in the July 2023 coup, has denounced Orano for many violations, including transferring enough money to the country for decades and a “addictive campaign” against the Niger government and its partners.
“Since July 26, 2023, in the face of this irresponsible, illegal and dishonest behavior by Orano, a French state-owned company that has openly opposed Niger and supports Sahel terrorism, the state of Niger has decided to nationalize all sovereignty,” the statement read. He added that former shareholders will receive compensation “in light of all legal obligations.”
In a statement, Orano said that he would not comment on Niger’s moves for now, but would soon continue communication.
Niger, Burkina Faso and Mali have adopted a more proactive attitude as mining companies operate within their borders and have enacted laws that require joint venture revenue and greater interest. This week, a court in Mali appointed administrators to reopen the country’s large gold mines, contrary to the owner’s Barrick mining wishes.
Niger, a former French colony, has argued that President Emmanuel Macron’s government is trying to overthrow the junta, and has since headed towards Russia alongside the military-led governments of Burkina Faso and Mali in a broader geopolitical reorganization of the region.
France is yet to recognize the new Niger government. Niger Mines Minister Colonel Abardi Osmane said last year that it was “not possible” for the country to “allow French companies to continue to extract our natural resources” due to Paris’s stance on the regime.
The Financial Times reported last month that Orano was investigating the sale of three uranium assets at Niger, including Somair, and that it is said that Russian and Chinese companies are interested.
The company said it lost operational control of its three Niger subsidiaries in December, all of which are owned in conjunction with the state. However, the nationalization of Somair, which operates multiple fields in the northern central Agadez region, is the first time the state has seized full control of Orano assets.
Orano, 90% owned by the French government, launched several international arbitration cases against Niger and began new legal proceedings against the government in May following an attack on the office that led to the arrest of the local company director.
