Will France face energy shortfall after Niger cuts uranium supply?

The Niger military administration’s decision to cancel the permit for a major uranium mine operated by the French company Orano has reinforced the increased friction between the nation's former colonial ruler and the junta as it pursues further disengagement from France.

Niger is one of the world's biggest producers of uranium, ranked at number seven, according to the World Nuclear Association (WNA). French nuclear power plants have sourced uranium mined in Niger by Orano, formerly known as Areva, for more than fifty years.

Roughly 70 percent of France's electricity is generated from nuclear power, and Niger supplies 15 percent of uranium for that purpose to the Western European country.

A naturally occurring radioactive element, uranium is commonly used to fuel nuclear reactors for electricity generation, as well as weapons. production.

In 2022, Niger also supplied more than a quarter of the uranium used in the European Union, according to the Euratom Supply Agency, the bloc’s nuclear energy agency. This makes it the second-biggest uranium source, after Kazakhstan, accounting for 25.38 percent of the share.

“Niger is the source of a substantial portion of the EU’s uranium imports and meets 15 percent of France’s uranium requirements as well as a fifth of Europe’s uranium needs,” writes Joana de Deus Pereira, a senior research fellow at RUSI Europe. “This symbiosis, however, is strained with the advent of the coup, challenging France’s continued relevance and influence in Niger and beyond.”

Growing anti-French sentiments

Last July, soldiers in Niger declared a coup on live television, ousting President Mohamed Bazoum, who had unsuccessfully attempted to combat terrorist activities in the country with the aid of French troops.

Plus, there were claims that President Mohamed Bazoum was serving French interests, and these accusations were used to justify his removal from power, led by Gen Abdourahmane Tchiani.

Before the military coup, Niger was an important economic and security ally for Western countries in the Sahel region. However, the junta that took control pledged to cut ties with the West, leading to a review of mining agreements and the withdrawal of Western troops from Niger.

After the coup, Nigeriens protested and attacked the French embassy. Historically, some of their grievances can be traced to how French colonial rule exploited resources and used oppressive methods to maintain control. Even after African countries, such as Niger, gained independence, France continued to interfere in their politics and economies.

According to Raphael Granvaud, author of the book ‘Areva en Afrique’, France's continued economic, political, and military influence over its former colonies after their independence is cited as one of the reasons for its control of uranium resources.

Former Nigerien energy minister Mahaman Laouan Gaya indicated to German state-owned broadcaster DW several weeks after the coup that people in Niger feel the economic “partnership is very unequal” between the two countries.

According to Gaya, despite exporting €3.5 billion ($3.8 billion) worth of uranium to France, Niger only received €459 million in exchange.

"If Niger decides not to export uranium to France, it will have dramatic consequences for France but little impact on the Nigerien economy," he said.

He added that the majority of Niger's population does not have access to electricity and shared concerns over the exploitation of prices, which results in Niger receiving insufficient income for its exports.

On unequal ground

However, Chatham House think tank’s Alex Vines told the broadcaster France’s dependence is inflated. "France does business with countries like Kazakhstan, Australia, and Namibia. It can easily diversify its uranium supply," said Vines.

Following the coup, an Orano spokesperson also told the AFP news agency there would be “no short-run risks on Orano’s supply capacities both in France and internationally,” should uranium exports to France were frozen.

Last August, Euratom, too, stated that there would be no immediate threat to nuclear power production in Europe if Niger reduces uranium supplies. This situation underscores power imbalances, with countries like France, a former colonial power, including in Niger, taking advantage of less developed nations, ultimately leaving local communities at risk while benefiting financially.

Despite uranium from Niger being used to power Europe for decades, the West African nation, one of the poorest in the world, has not benefited much from it. The repercussions in Niger goes beyond the political and economic implications.

Another subsidiary of Orano, the Akouta Mining Company (Cominak), was actively operating in Niger's Arlit region since 1978. Having extracted 75,000 tons of uranium, a substantial amount of which was used to power France's extensive network of nuclear reactors, the site was closed in 2021. What was left behind was about 20 million tonnes of radioactive waste, leaving concerns for Niger’s health and water supply to arise.

“The waste produces a radioactive gas known as radon. The strong wind of the desert spreads radioactive dust which is then inhaled by the surrounding population,” said Bruno Chareyron, a scientist at the Independent Research and Information Commission on Radioactivity (CRIIRAD), a French independent nuclear watchdog group.

Nigerian regulations mandate that miners should not be exposed to more than 20 millisieverts (mSv) of radiation per year. According to Orano, the maximum radiation exposure at the mine site in 2022 was reported to be 8.6 mSv per year, as reported by AFP.

However, former Cominak employee Hassan Souley had doubts, telling the French news agency in March last year that "people live seven kilometres from the mines — everyone is very worried, people are sick”.

"Orano is behind all these problems and does not even want to listen."

Reclaiming Niger mines

In a statement on June 20, state-owned Orano said that the firm through its subsidiary Imouraren SA has been told to vacate the Imouraren mine, one of the largest uranium deposits in the world, located in northern Niger, where an estimated 200,000 tonnes of the metal can be found.

In 2015, mining operations were scheduled to commence in that area, but plans were put on hold due to the decline in uranium prices following the 2011 Fukushima nuclear disaster in Japan, and the French firm found operating costs too high, France 24 reported.

However, with the increasing urgency to combat climate change and the need for carbon-free energy sources, interest in uranium surged. This interest grew further after Russia's invasion of Ukraine, and countries needed a different energy source that was not reliant on the former, leading to the price of uranium to go up by 233 percent over the last few years, Bloomberg reported in June.

“Current market conditions, with a favourable rise in the price of uranium, make it once again possible to consider bringing Imouraren into production,” Orano’s statement read.

In March, Niger’s Ministry of Mines sent a letter to the French firm, requesting its subsidiary Imouraren SA to start working by June or face the possibility of their licence being revoked.

“The ministry asked Imouraren SA to resume mining work within three months, in accordance with the provisions of the mining law and the feasibility study submitted to the Mining Administration and validated by the State of Niger. Failing this, the PEX [Imouraren mining permit] will be withdrawn and its perimeter returned to the public domain,” according to The Africa Report, which quoted a June 11 internal memo from the ministry.

Orano insisted that “the infrastructures have already been reopened since June 4, 2024, to accommodate the construction teams and move the work forward,” its efforts aligning with the directives of the government, which assumed power through a coup last July.