French uranium mining company Orano has announced that its joint venture with Niger, SOMAIR, is facing bankruptcy due to export restrictions imposed by the country’s military government, according to a Reuters report.
The development follows the seizure of control of the mine in December 2024 by the government, which also revealed plans to nationalise the mine.
The mining sector in West Africa is undergoing significant changes as governments seek to assert greater control over their natural resources.
Orano, which holds a majority stake in SOMAIR, has been in a year-long dispute with Niger, leading to the suspension of uranium production.
The company has communicated SOMAIR's deteriorating financial situation to the authorities since October 2024.
Niger accounted for 15% of Orano's uranium supply when the local unit was fully operational.
The company states that the insistence of the Nigerien authorities on maintaining production costs has brought SOMAIR to the brink of financial collapse.
Despite current challenges, the main mineworker’s union in Niger has stated that production at the mine will continue. The union has accused Orano of sabotage - a charge it denies.
Orano has pointed out that its state-owned partner, SOPAMIN, has avoided sharing production costs during periods of low uranium prices.
This forced Orano to bear an unfair share of the financial burden by having to purchase additional uranium above its shareholding to maintain the financial stability of the mine.
Amidst rising uranium spot prices, which have seen a 7% increase in the first sixth months of 2025 and reached a seven-month high of $79 per pound in late June, Orano emphasised its right to legal action without further specifying its next steps.
It has expressed a desire for the remaining financial resources of the venture to be allocated towards paying employee salaries and maintaining industrial facilities.
The situation in Niger reflects a broader trend in the region, with Mali placing Barrick's Loulo-Gounkoto gold complex under state control, and Burkina Faso and Guinea seeking more significant mining shares from Western companies while showing interest in Russian partnerships.
