Uranium in Niger
- Niger has two significant uranium mines providing about 5% of world mining output from Africa's highest-grade uranium ores.
- Niger's first commercial uranium mine began operating in 1971.
- There is strong government support for expanding uranium mining.
Uranium was discovered at Azelik in Niger in 1957 by the French Bureau de Recherches Geologiques et Minières (BRGM), looking for copper. The French Atomic Energy Commission (CEA) initiated further studies. Further discoveries in sandstone followed including at Abokurum (1959), Madaouela (1963), Arlette, Ariege, Artois & Tassa/Taza (1965), Imouraren (1966) and Akouta (1967). In the midst of this, Niger became independent of France in 1960.
In 1964 the coal deposit of Thirozerine was also discovered. It is currently operated by SONICHAR and produces electricity for the northern Agadez region, including the uranium mines.
Historically, uranium mining in Gabon has been closely linked with Niger due to the role of the French Atomic Energy Commission and Cogema (now Orano).
In 2021 Niger produced 2248 tU, and cumulative production from the country was about 150,000 tU to the end of 2019.
Uranium is mined close to the twin mining towns of Arlit and Akokan, 900 km northeast of the capital Niamey (more than 1200 km by road) on the southern border of the Sahara desert and on the western range of the Air mountains. The concentrates are trucked 1600 km to Parakou in Benin, then railed 400 km to Cotonou port and exported for conversion, mostly to Comurhex in France.
Production is first sold to the partners in proportion to their equity at an 'extraction price' determined by the government, notionally based on operation costs, but somewhat higher. From February 2012 the extraction price is CFA 73,000/kgU ($145/kgU), paid in Euros. The partners then sell or use it, in the case of the government, through a trading company.
Orano’s SOMAIR and COMINAK were licensed to the end of 2013, and in mid-December 2013 both were shut down for maintenance, pending resolution of negotiation on licence renewal. The Niger government has been seeking a new deal to be based on the 2006 mining law, which raised royalty taxes from 5.5% as set in the 10-year licence to between 12% and 15%, depending on profits. However, current low uranium prices limited the economic scope for higher taxes, and negotiations were protracted. The mines resumed operation at the end of January 2014 under the terms of a government decree.
In May 2014 the government and Areva (now Orano) signed a new five-year agreement for the two mines based on the 2006 mining law and expressing what both sides said was a balanced partnership. The royalty rate will potentially increase to 12% of market value, but depending on profitability. The deal stipulates for the first time that the firms' boards will include Nigerien managing directors – appointed in 2015 for SOMAIR, and in 2016 for COMINAK. Also, Areva will provide €90 million (about $120 million) to support construction of a road from Tahoua to Arlit, near the uranium developments, as well as a further €17 million ($23 million) for development in the surrounding Irhazer Valley. Areva will also build a new headquarters for the two operations in the capital Niamey at a cost of €10 million ($14 million). The government expects more than $39 million in additional tax revenues annually from the new agreement. In October 2014 the government formally approved the agreement.
Orano’s Niger website documents some of the wider issues involved with its long-term activity in the country. The company claims: “In 2013, 90% of the direct revenue from the mines went to the state of Niger.”
SOMAIR: Arlit/Arlette, Tamou, Tagora, Artois
SOMAIR is 63.4% owned by Orano and 36.6% by Office National des Ressources Minières du Niger (ONAREM) through Sopamin, the Niger mining assets company. Orano is the operator.
The Société des Mines de l'Aïr (SOMAIR) was formed in 1968 and started production from the Arlette/Arlit deposit in 1971, by open cut mining of 0.30-0.35% ore down to 70 metres depth. The mine is 250 km north of Agadez and 7 km northwest of Arlit town. Capacity was subsequently expanded to about 2100 tU/yr in 1981 (though half was then laid up). Since 2003, production ramped up again, with the Tamou deposit producing 1565 tU in 2006. The Artois deposit is deeper (90 metres) and at a lower grade (0.20-0.25%). Mill capacity was increased to 3000 tU/yr in 2012 and product is sodium uranate. Average head grade in 2015 was 0.28%U. Resources at end of 2016 are tabulated below. A 16% drop in production was planned by 2017 (from 2015).
A new 1.4 Mt per year heap-leach operation for low-grade ore (<0.1%U) – Somair Lixi – has contributed up to 1000 tU/yr to production from 2010. Mine operations are certified under ISO 14001 for environmental management.
In May 2013 a terrorist car bomb damaged the mine plant and killed one employee, also injuring 14. Production partially resumed four weeks later, in mid-June, and was fully restored in August. Four French nationals including an Areva employee, among a group of seven who were kidnapped from Arlit in 2010, were released in October 2013.
In March 2020 Orano reported that it intended to ensure the continuity of uranium production in northern Niger, so expected Somair production to continue for ten years, or until the Imouraren project resumes.
At the end of 2013 Areva reported 20,000 tU inferred resources for a 100% owned Arlit concession.
Production in 2021 was 1996 tU with an average grade of 1.81%. There are plans in 2022 to decarbonize the Somair site through the construction of a photovoltaic plant.
COMINAK: Akouta, Akola, Afasto/Ebba
COMINAK is 59% owned by Orano, 10% by Spain's Enusa, and 31% by ONAREM through Sopamin. Orano is the operator.
The Compagnie Miniere d'Akouta (COMINAK) was set up in 1974 and started production from the Akouta deposit in 1978, a few kilometres southwest of Akokan, and then from Akola and Afasto orebodies. This was an underground operation at a depth of about 250 metres, with 250 km of tunnels. Mill capacity was 2000 t/yr of magnesium uranate (75% U) or 1800 tU/yr. Head grade in 2015 was 0.4%U. There was a 30% drop in production from 2015 to 2018 and with reserves almost exhausted the mine closed in March 2021 after producing 75,000 tU.
Cominak took steps to improve its competitiveness. Production switched to the new deposit of Ebba/Afasto, south of Akouta and Akola. Mine operations are certified under ISO 14001 for environmental management.
SOMINA: Azelik
The Societe des Mines d'Azelik SA (SOMINA) is a joint venture established in 2007 to mine Azelik/Teguidda, 160 km southwest of Arlit and 150 km northwest of Agadez, in the Agadez region. Its equity is 37.2% China's CNNC International, 33% Niger government, 24.8% ZXJOY Invest (Chinese) and 5% Trendfield Holdings Ltd. In 2009 Trendfield sold its 5% of the Teguidda/Azelik deposit to Korea Resources Corp (KORES).
Azelik is being developed with major Chinese (CNNC) equity and came into production at the end of 2010, with the aim to ramp up to 700 tU/yr. It is an open pit and underground operation using alkaline leach, and with resources of 15,600 tU at 0.2%. CNNC said in August 2014 that Azelik has experienced prolonged project delays, overruns in its construction budget, and low production “which led to heavy losses and causing default [on the] repayment of bank loans.” In February 2015 CNNC International announced that the mine would be closed and put on care and maintenance due to “tight cash flow". It had earlier hoped to raise production to 2500 t/yr by 2015 and double that by 2020.
Niger mine production (tonnes U)
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2021 | |
| SOMAIR | 2726 | 3065 | 2730 | 2331 | 2509 | 2164 | 2116 | 1783 | 1996 |
| COMINAK | 1075 | 1506 | 1508 | 1501 | 1607 | 1313 | 1332 | 1128 | 190 |
| SOMINA | 64 est | 96 est | 290 est | 225 est | 0 | 0 | 0 | 0 | 0 |
| Total | 3865 | 4667 | 4528 | 4057 | 4116 | 3477 | 3449 | 2911 | 2186 |
Imouraren
Imouraren Inc, a joint venture, is 66.65% owned by Orano Expansion (86.5% Orano, 13.5% Korea Electric Power Co (Kepco/KHNP)) and 33.35% by the state: Niger government (10%) and Sopamin (23.35%). Kepco paid €170 million for its share and the right to take 10% of production. This is in line with Kepco's 2.5% equity in the new Georges Besse II enrichment plant in France. In February 2012, in connection with a 20,000 tU purchase agreement over 15 years, EdF agreed with Areva (now Orano) to take a 12.7% stake in the mine but this did not proceed. In January 2013 CNNC’s SinoU subsidiary agreed to buy a 10% stake for €200 million, though this did not proceed.
Development of the large Imouraren deposit about 80 km south of Arlit and 160 km north of Agadez was confirmed in January 2008, after Areva agreed to increase royalty payments to the government by 50%, following a 2006 agreement. In January 2009 Orano was awarded a mining licence.
The Imouraren project is a €1.9 billion investment, and Orano has also agreed to spend €6 million per year on health, education, training, transport and access to water and energy for local people. Orano was aiming for initial production in 2014, ramping up to 5000 tU/yr for 35 years. Production is expected to be 5000 tU/yr for 35 years from late 2013. It will be the largest mining project ever undertaken in Niger, the largest open pit uranium mine in Africa, and the largest anywhere to use heap leaching – on a 42-hectare pad. The deposit covers 8 km by 2.5 km and Orano lists 213,700 tonnes of uranium reserves at 0.07%U, plus 62,500 tU indicated resources. Orebody depth is between 100 and 150 metres and maximum thickness is 60 m. At full production, the project’s acid heap leaching facility will process 20,000 tonnes of ore per day with an expected 85% rate of recovery.
Excavation of the first pit was under way in mid-2012, but labour disputes put the schedule in sufficient doubt for the government to warn the company that delays were unacceptable. Areva agreed to pay the government €35 million to support security at the site. In May 2014, with current uranium prices not sufficient to justify mining of the deposit, the government and Areva agreed to set up a joint strategic committee which will determine when mining should start – possibly not until about 2020 or when COMINAK resources are depleted. Almost €1 billion in capital expenditure is still required, and 4 billion tonnes of ore and overburden will need to be moved over the life of the mine.
In 2015-16 Orano recorded €194 million and then €316 million impairment charges on the project, writing it down to €348 million.
An earlier Imouraren joint venture agreement was signed in 1974 but development stalled on economic grounds.
In September 2022 Orano confirmed that optimization studies assessing the “feasibility of operating the deposit with other extraction methods” were under way for the Imouraren project.
New mines and prospects
Madaouela
Goviex Uranium's Madaouela project is 15 km from the Arlit and Akouta mines (SOMAIR & COMINAK) in the Arlit region of the Air Massif, and was discovered by the CEA in the early 1960s. Trendfield (25%) and UK-based GoviEx Uranium formed the GoviEx Niger JV in 2007 to explore the Madaouela and Anou Melle mineralisation, but Trendfield then exchanged this equity for a 10% share of GoviEx. GoviEx Uranium is a private company founded by Govind Friedland, who holds 10% of it following an IPO in 2014. Denison holds 20% of GoviEx Uranium, after transferring some African interests in 2016. Toshiba, Ivanhoe Industries and Cameco are also shareholders, with 9%, 6% and 4% respectively. The Niger government holds a 10% free carried interest and in April 2019 acquired another 10% for $14.5 million. In April 2012, Toshiba Corporation entered a convertible debt-financing agreement with GoviEx Uranium, providing support for the company's operations through to the start of uranium extraction and processing, from which time it has a 14-year offtake agreement for 230 tU/yr.
In November 2017, measured and indicated resources of the Madaouela Uranium Project were 42,600 tU plus 10,640 tU inferred resources (NI 43-101 compliant), most in sandstone of the Marianne/Marilyn (M&M), Miriam and MSNE (Madaouela South North East) deposits over 15 km. The unusual Miriam deposit was discovered in 2012. Probable reserves were 23,330 tU, with underground mining of M&M and MSNE, open pit for Miriam. GoviEx completed an environmental impact and social impact assessment (ESIA) in March 2015, applied for a mining permit in June, and the government issued the mining permit in February 2016 for Madaouela I, an area including the above deposits. In April 2019 the government included Agaliouk in the Madaouela 1 mining permit. It is adjacent to Madaouela 1 and covers part of Miriam as well as MSEE (Madaouela South Extreme East) and La Banane deposits.
Conventional processing following radiometric sorting and use of ablation technology is expected to produce 1040 tU/yr over 21 years, with potential for expanding the resource. Ablation applies a physical, grain-size beneficiation process to ore slurries. Start-up capital cost is expected to be $359 million, and operating cost $24.50/lb U3O8, or $31.50 including royalties. Project economics are based on a $70/lb uranium price.
GoviEx’s application for the Eralrar exploration tenement was approved in February 2016. The application for the Agaliouk (Agal) tenement, a significant part of the project, was not approved until November 2017. In April 2019 the government agreed to grant renewed nine-year permits for the Madaouela 2, 3&4, and Anou Melle exploration tenements.
In September 2022 Goviex published its feasibility study for Madaouela. The study revealed that Madaouela is one of the largest uranium resources in the world, with 100 million pounds of U3O8 in measured and indicated resources. The life of mine uranium production is estimated at 50.8 million pounds U3O8 (averaging 2.67 million pounds U3O8 per annum over 19 years). The total initial capital cost is $343 million.
In January 2023 GoviEx Uranium announced that 20 institutions that expressed an interest in financing the project were shortlisted for the due diligence phase. The project finance process is expected to take several months.
Dasa
Global Atomic Corporation, a public company listed on the Toronto Stock Exchange, is developing the Dasa project, part of the Adrar Emoles tenement in the Tim Mersoi basin – about halfway between Arlit and Agadez, and south of Orano’s Cominak and Somair uranium mines.
In April 2020, Global Atomic announced the results of an updated preliminary economic assessment of its Phase 1 mining plan that featured underground mining of the high-grade (>0.5%U) 'Flank Zone'. This study demonstrated that with a two-year build and a capital cost of $203 million (including 20% contingency) it would be expected to achieve a 26.6% internal rate of return (IRR) at a $35/lb assumed uranium price and an all-in sustaining cost of $18.39/lb U3O8. The Phase 1 plan provided 44 Mt of feed material at 5396 ppm to recover over 44 million lbs of U3O8 over 12 years of production from the Flank Zone. Subsequent mining will be from other mineralized horizons given the resource has been estimated at over 102 million pounds U3O8 indicated and 88 million pounds U3O8 inferred.
In December 2020 the government granted a mining permit for the project. Global Atomic plans to start building the mine in early 2022, with a view to commercial operation about the end of 2024.
In late 2021 a feasibility study reported “initial Phase 1 mine development over 12 years producing 45.4 million pounds”. Initial excavation was completed in mid-2022, along with significant infrastructure development.
Earlier in July 2017, the company signed an ore sales agreement with Orano Mining to sell a portion of its production to Orano for processing by Somair at Arlit, 100 km north. The company’s Tin Negouran (west of Agadez), Isakanan and Dajy (part of Adrar Emoles) deposits are less advanced, but do host non-NI 43-101 compliant uranium resources.
In February 2023 a local court in Agadez issued several orders against Global Atomic Corporation's mining subsidiary SOMIDA (Société Minière de Dasa S.A.), including an order to cease all operations under the Adrar Emoles 4 exploration permit. Global Atomic said the orders would not affect the Dasa project, which is covered by the Adrar Emoles 3 permit.
An updated resource estimate was published by Global Atomic in May 2023, showing 109.6 million pounds of U3O8 at 0.49%, up 50% from a July 2019 estimate of 73.1 million pounds U3O8 at 0.53%.
Abokorum
In July 2006 the China National Nuclear Corporation (CNNC) agreed to develop the 12,790 tU Abokorum deposit in the Agadez region, through its subsidiary China Nuclear International Uranium Corporation (SinoU), but no more has been heard of this.
SinoU and China's ZTE Energy Corporation have established a joint venture to carry out uranium exploration near the Azelik mine.
Trendfield formed the UREX joint venture (approx 50:50) with Australia's Artemis Resources to explore the Tagaza deposits adjacent to Teguidda. (Parent company Trendfield Energy and Resources is a China-based "private international mining and consulting firm".)
In April 2007 the government issued uranium exploration permits to Areva (now Orano), Rio Tinto and others for the Tchirozérine area, 40 km northwest of Agadez. An Indian company took out an exploration licence in the Arlit region.
In January 2022 Niger’s government granted four exploration permits to Tejia Resources for uranium in the Arlit and Tchirozérine departments of the Agadez region.
Niger Uranium Reserves and Resources
| Reserves | Resources | |||
| proven & probable | measured | indicated | inferred | |
| SOMAIR | 16,544 tU @ 0.21% | 27,603 tU @ 0.13% | 23,200 tU @ 0.14% | |
| Arlit concesion | 12,845 tU @ 0.16% | |||
| COMINAK | 88 tU @ 0.38% | 116 tU @ 0.32% | 100 tU @ 0.32% | |
| Imouraren | 213,722 tU @ 0.07% | 62,584 tU @ 0.06% | 2879 tU @ 0.07% | |
| SOMINA Azelik | 9,684 tU @ 0.14% | |||
| Madaouela | 12,069 tU @0.1% | 30,534 tU @ 0.1% | 10,647 tU @ 0.11% | |
| Dasa | 39,080 tU at 0.15% | 33,695 tU @ 0.15% | ||
NEA and IEA Uranium 2022 Resources, Production and Demand
At the end of 2022 Niger's reasonably assured resources (RAR) were estimated by the IAEA as 256,520 tU up to $130/kgU, mostly accessible by open pit. Inferred resources were 53,600 tU at up to $130/kg, all in sandstone and almost all accessible by open pit (98%).
In April 2007 the government said that it aimed for uranium production of 10,500 tU/yr "in the next few years", and named Areva as its strategic partner in uranium development.
Areva is reported to have been paying royalty on the basis of a product valuation of 27,300 CFA francs ($57) per kilogram, and in 2007 this was increased to 40,000 CFA ($83/kg), plus the provision of 300 tonnes of product for Niger to sell on the open market. This was then sold to Exelon in the USA for $42 million.
In August 2008 Niger Uranium Ltd announced an inferred resource of 1700 tU at In Gall, this being Samrec-compliant and in shallow sandstone.
In January 2010 NGM Resources announced an inferred resource of 5000 t U3O8 at Takardeit, some 100 km south of Imouraren. Paladin Energy made a $24 million takeover bid for NGM, but it decided to let this lapse in October 2010 due to armed hostilities in the region. However, the Australian Takeovers panel disallowed the decision and Paladin proceeded with the takeover of NGM and its Indo Energy Ltd (IEL) subsidiary, in line with the recommendations of NGM directors. Following attacks on Areva’s operations, in mid-2013 Paladin ceased its exploration activities and invoked a force majeure consideration.
In 2009 Korea Resources Corp. agreed to buy 400 tonnes per year of uranium or U3O8 and take a 5% share of the Teguidda mine in central Niger from Trendfield, a Chinese company.
Non-proliferation
Niger is party to the Nuclear Non-Proliferation Treaty. It has a comprehensive safeguards agreement in force and in 2004 signed the Additional Protocol.
Notes & references
General sources
Orano
OECD-NEA & IAEA, Uranium 2022: Resources, Production and Demand (often referred to as the 'Red Book')
WISE