Uranium markets unfazed by Niger coup

The global uranium market has shrugged off a July 26 coup in Niger, as key operators in the West African country have avoided disruptions.

Niger was the world's seventh-largest uranium producer in 2022, according to S&P Global Market Intelligence data. Nigerien uranium production totaled 5.26 million pounds that year, compared to 55.29 million pounds of uranium from Kazakhstan, the world's largest uranium producer.

The country is a key uranium supplier to the EU, which has raised concerns that supply disruptions linked to the coup could hamper nuclear power plants in countries such as France, POLITICO reported. Niger was the top origin country for uranium deliveries sent to EU utilities in 2021, accounting for 24.3% of imports, according to Euratom Supply Agency, an agency of the EU.

But major disruptions to Nigerien uranium production have not yet come to pass, insulating the market from any major swings for now, according to uranium companies with Nigerien operations.

The Platts assessed spot price of uranium delivered to Canada averaged $56.16 per pound during the week of July 19 to July 25 leading up to the coup. From July 27, the day after the coup, through Aug. 16, average spot prices have only increased by 0.6% compared to the prior week average, to reach $56.50/lb. On Aug. 16, the spot uranium price was $56.85/lb, up 1.2% from $56.15/lb on July 26.

France-based nuclear energy and uranium company Orano SA, Canada-based uranium miners GoviEx Uranium Inc. and Global Atomic Corp., which combined operate most of Niger's largest active uranium mines, all said their Nigerien operations have remained largely unimpeded by the coup.

"To date, activities are continuing on [our] sites," an Orano spokesperson told S&P Global Commodity Insights on Aug. 17. Orano is the majority owner of the top two uranium mines in Niger, Imouraren and Somair. The preproduction-stage Imouraren development is on hold awaiting higher prices, while Somair is fully operational, according to Market Intelligence data.

Orano does not expect the coup to have an "immediate impact" on its Nigerien mines or its asset values, the company said July 28 in a half-year earnings release.

GoviEx has taken a slightly more optimistic tone.

"GoviEx's operations in Niger continue as usual," the company said in a July 31 statement. "We are currently able to meet all of our obligations to employees and suppliers, and we anticipate this stability to persist."

The company did not reply to a request for further comment.

Leaders at Global Atomic pointed to recent developments that are improving confidence in the uranium sector's ability to operate as normal.

"[Our subsidiary] SOMIDA's operations in Niamey and at the Dasa Mine site have not been impacted to date, except for delays in receipt of mine consumable supplies and other shipments from outside Niger," Global Atomic said in its second-quarter earnings report released Aug. 10, referring to border closures following the coup.

"Land borders are reopening," Stephen Roman, Global Atomic chairman, president and CEO, said in a statement within the company's earnings report. "We expect the movement of goods and services will resume in due course."

Roman said new political appointments within Niger's government are cause for optimism about the uranium sector's ability to function normally. Niger announced Aug. 19 that Mahaman Moustapha Barké, the former head of Nigerien uranium producer SOPAMIN SA, would become minister of Energy, Mines and Petroleum.

"This will now enable SOMIDA personnel to resume dialogue with the Mines Ministry to confirm their support for the Dasa Project," Roman said in the statement.

SOPAMIN, the World Nuclear Association, and the Euratom Supply Agency did not respond to requests for comment or declined to comment.

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