Orano in Niger: Let’s talk economics

The recent events in Niger on July 26 raise a number of questions related to economics and Orano’s activities in Niger. To better understand the subjects brought up and to decipher them, below are answers to the various questions.

In parallel, it is important to note that Orano’s management is carefully monitoring the situation, in collaboration with local managements and employees on site. Maintaining safety is our priority; the group therefore set up special monitoring to ensure the safety of its employees and its activities.

To date, the activities at Arlit’s operational sites and at the headquarters in Niamey are continuing with appropriate measures in relation to the curfew established for all of Niger.

What are Orano’s activities in Niger?

For more than 50 years, through its subsidiaries Orano has worked with its partners to use Niger’s uranium potential to mine the deposits in the northwest of the country, in the region of Aïr.

What agreements frame Orano’s activities in Niger?

The mining companies SOMAÏR and COMINAK operate under the mining agreements signed with the State of Niger. These agreements were approved by the Nigerien Council of Ministers and published in the Official Journal of the Republic of Niger. The most recent agreements of SOMAÏR and COMINAK cover 2019 up to and including 2023.

In addition, on May 4, 2023, in Niamey, the State of Niger and the Orano group signed a Global Partnership Agreement (AGP).

This agreement confirms Orano’s dual industrial and societal commitment to Niger and aims to ensure the continuity uranium production in northern Niger. It covers several subjects: the IMOURAREN project, the conditions of pursuing the mining activity of SOMAÏR (in operation), the remediation of COMINAK, Orano’s societal commitment to Niger as well as other common interest subjects.

Is it true that Niger does not reap any profit from Orano’s activities?

Since the creation of mining companies in Niger, the State of Niger has reaped direct economic benefits from mining companies, made up of mining royalties, all other taxes, and dividends.

Mining companies sell their production to their shareholders in proportion to their participation in the capital of these companies. The Nigerien State is a shareholder with more than 30% stake in the 3 mining companies and manages its share of production independently.

In addition to these direct benefits, there are indirect benefits consisting in the salaries paid to employees of mining companies in Niger and in the purchasing conducted by these companies, which have helped to develop the Agadez region.

Orano has supported the Initiative for Transparency in the Extractive Industry (ITIE) since its creation in 2003, of which Niger is one of the member countries. For this purpose, ever year Orano publishes the amount of its extractive payments to Niger. 

In addition, it should be noted that to date, other companies are active in the uranium sector in Niger: Canadian companies and a Chinese company. Several young companies, with purely Nigerien or international capital, have recently submitted applications and obtained exploration permits in Niger.

Learn more about the ITIE

That said, things must be understood in their context and the economics of the uranium mining industry must be considered in relation to that of the oil industry in some countries. This is not comparable. On a worldwide scale, the commercial value of all uranium sold in a given year on the worldwide market is equal to two weeks revenue of an international oil company. The commercial value of the uranium produced in Niger represents a little over 3% of the worldwide market; that is, half a day of revenue of a large oil company.

How do Orano’s subsidiaries in Niger participate in the country’s economic development?

Orano participates actively in Niger's economic development. The benefits from the mining activity are real, numerous, and tangible in the creation of jobs but also through societal actions.

The group deploys an ambitious societal policy of several millions of euros per year in education, health, and infrastructure, defined in a common agreement with the State of Niger and the municipalities close to our sites.

As part of the Global Partnership Agreement signed on May 4 at Niamey between Orano and the State of Niger, 3 major areas were selected for societal projects, with projects still under study; they will be conducted until 2030 with a global budget of €40 million:

• Improving skills
• Promoting education for girls
• Economic development in the area of energy

As a reminder, all the societal projects present in the previous 2014 agreement were carried out or are underway.

• Construction of a headquarters at Niamey for Nigerien companies linked to our activities (€10 million)
• Funding of a section of the Tahoua Arlit road (€90 million)
• Program for agricultural development in the Irhazer valley in northern Niger (€17.4 million)

How does Orano ensure the supply of uranium to its customers?

The current crisis has no short-term effect on Orano’s capacity to deliver to its customers, including France.The natural uranium concentrate produced on site is sent by truck to the port of Cotonou (Benin) then by sea, to monitor conversion then enrichment operations in France or in Canada.
The frequency of exports to France or Canada is around 4 to 6 ships per year. We are not in a short-term emergency situation.Orano ensures the security of supply for its customers through geographical diversification in the areas where it is located across 4 continents.As a reminder, the Orano group constantly maintains more than 20 years of resources and reserves through production in Kazakhstan, Canada, and Niger and through development projects in Mongolia, Uzbekistan, and Niger.
In addition, Orano constantly conducts exploration to discover new deposits, notably in Canada.

What are the amounts of investments that Orano is planning in Niger in the coming years?

Orano is planning to make significant investments as part of continuing SOMAÏR’s activities, performing tests to develop the IMOURAREN mining project (€85 million), and conducting societal projects set forth in the AGP (€40 million).