Niger - Uranium MiningNiger - Uranium Mining
Overview
Table 1 – Niger Uranium Mining Production (USD Million)
Data Source: National Institute of Statistics; estimates based on IMF projections
Niger is the fourth largest uranium producer in the world. Since 1968, French mining firm AREVA has been mining uranium deposits in the northwestern city of Arlit, via its subsidiaries Société des Mines de l’Aïr (SOMAIR) and Société des Mines de l’Aïr (COMINAK). Relations between Areva and the GON are tenuous, and negotiations between the two regarding profit-sharing and taxation have been fraught with accusations of dishonesty and greed in reporting profits. Due in part to the drop in uranium prices, a May 2014 agreement between Areva and the GON eliminated a 5.5 percent flat tax, and instead created a structured royalty regime by which the company would pay 5.5, 9 or 12 percent of its profits to the GON based on the ratio of income to mining product. The agreement also postponed the completion of a third mine, Imouraren, due to low uranium prices.
Beyond the three Areva mines, several other uranium deposits are currently under exploration. In February 2016, the GON issued a mining permit to Canadian firm Goviex to begin operations at the Madouela I deposit in the Arlit region of the Air Massif. Production is expected to begin in 2017 or 2018, and is expected to yield 975 metric tons of uranium per year over a period of 18 years. A second Canadian firm, Global Atomics Fuel, is reported to be developing four separate uranium deposits, the largest of which is at Dasa, located halfway between Arlit and Agadez and about 30 kilometers southeast of Imouraren. The company expects to apply for a mining license in 2018.
Leading Sub-Sectors
Other mineral resources include: iron ore, phosphates, gold, copper, and coal. Foreign firms are involved in explorations for gold along the Burkina Faso border, and coal mining has also seen an increase in foreign investment recently. By law, any company to which the GON grants a mining permit must give the GON a 10 percent share of the company. This law applies to both foreign and domestic operations. The GON also reserves the right to require companies developing mineral resources to give the GON up to a 33 percent stake in their Nigerien operations.
Opportunities
Investment opportunities exist in the supply of drilling equipment, transportation, and other services.
Web Resources
AKOUTA
ARLIT
ARVEVA
World Nuclear – Uranium in Niger
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Table 1 – Niger Uranium Mining Production (USD Million)
| Year | 2014 | 2015 | 2016 (est.) | 2017 (proj.) |
|---|---|---|---|---|
| Total Market Size | ||||
| Total Production | 419 | N/A | N/A | N/A |
| Total Exports | 413 | 411 | 458 | 476 |
| Total Imports | N/A | N/A | N/A | N/A |
| Imports from the U.S. | N/A | N/A | N/A | N/A |
| Exchange Rate: 1 USD | 585 CFA | 585 CFA | 585 CFA | 585 CFA |
Niger is the fourth largest uranium producer in the world. Since 1968, French mining firm AREVA has been mining uranium deposits in the northwestern city of Arlit, via its subsidiaries Société des Mines de l’Aïr (SOMAIR) and Société des Mines de l’Aïr (COMINAK). Relations between Areva and the GON are tenuous, and negotiations between the two regarding profit-sharing and taxation have been fraught with accusations of dishonesty and greed in reporting profits. Due in part to the drop in uranium prices, a May 2014 agreement between Areva and the GON eliminated a 5.5 percent flat tax, and instead created a structured royalty regime by which the company would pay 5.5, 9 or 12 percent of its profits to the GON based on the ratio of income to mining product. The agreement also postponed the completion of a third mine, Imouraren, due to low uranium prices.
Beyond the three Areva mines, several other uranium deposits are currently under exploration. In February 2016, the GON issued a mining permit to Canadian firm Goviex to begin operations at the Madouela I deposit in the Arlit region of the Air Massif. Production is expected to begin in 2017 or 2018, and is expected to yield 975 metric tons of uranium per year over a period of 18 years. A second Canadian firm, Global Atomics Fuel, is reported to be developing four separate uranium deposits, the largest of which is at Dasa, located halfway between Arlit and Agadez and about 30 kilometers southeast of Imouraren. The company expects to apply for a mining license in 2018.
Leading Sub-Sectors
Other mineral resources include: iron ore, phosphates, gold, copper, and coal. Foreign firms are involved in explorations for gold along the Burkina Faso border, and coal mining has also seen an increase in foreign investment recently. By law, any company to which the GON grants a mining permit must give the GON a 10 percent share of the company. This law applies to both foreign and domestic operations. The GON also reserves the right to require companies developing mineral resources to give the GON up to a 33 percent stake in their Nigerien operations.
Opportunities
Investment opportunities exist in the supply of drilling equipment, transportation, and other services.
Web Resources
AKOUTA
ARLIT
ARVEVA
World Nuclear – Uranium in Niger
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.