Niger is seeking to revive its uranium industry and attract new investment after increasing the government’s stake in the Madaouela uranium project in the north of the country.
Under a new mining agreement signed last week, the Nigerien state now holds a 40 per cent stake in the project, while Australian mining company Atomic Eagle retains 60 per cent.
The agreement comes as Niger seeks to secure a larger share of revenues from its mineral resources while broadening its international partnerships in the mining sector.
Hoskins Philip Ross, Managing Director of Mamico, said the development could encourage further international interest in Niger’s uranium industry.
“It is an encouraging sign showing that major international institutions continue to assess investment opportunities in Niger’s uranium sector. Atomic Eagle will similarly seek to attract international investment and financing for the development of Madaouela,” Ross said.
Atomic Eagle said it plans to accelerate preparations for the project and secure the financing required for construction, with the aim of reaching construction readiness within about two years.
The company’s plans come amid renewed efforts by Niger to develop its uranium resources following changes in its approach to the mining sector.
The country has also secured a separate agreement with the United States International Development Finance Corporation for financing of up to $414.2 million for the Dasa uranium project, which is being developed by Global Atomic in Niger.
The Nigerien government has said increased state participation in mining projects is part of a broader strategy to ensure that a greater proportion of revenues generated from the country’s mineral resources remains within Niger.
However, economist Issoufou Boubacar Kado said the development should not yet be interpreted as full economic sovereignty.
“I don’t think we can talk about economic sovereignty at the moment. What we can talk about is control over raw materials. That means we should decide who works with us. Before, it wasn’t like this. Niger could not have a partner in uranium or elsewhere other than France,” Kado said.
Uranium has long been an important component of Niger’s mining industry, with the country seeking to expand production while securing greater value from its natural resources.
The developments in the sector highlight the challenge facing Niger as it seeks to balance increased national control over strategic minerals with the foreign capital, technology and expertise required to develop major mining projects.
