Uranium in Niger

(updated November 2011)

• Niger has two significant uranium mines providing 7.5% 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 Areva NC).

Uranium mining today 

Niger is the world's third to fifth-ranking producer of uranium. In 2009 it produced 3243 tU, and cumulative production from the country passed 100,000 tU in November 2006. About 56,000 tU of this was from underground, and 44,000 t from open pit.

Uranium is mined close to the twin mining towns of Arlit and Akokan, 900 km north-east of the capital Niamey (more than 1,200 km by road) on the southern border of the Sahara desert and on the western range of the Air mountains. The concentrates are trucked to ports in Benin and exported for conversion, mostly to Comurhex in France.

Arlit 

The Société des Mines de l'Air (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 60 metres depth. Capacity was subsequently expanded to about 2100 tU/yr in 1981 (though half was then laid up). Since 2003, production is ramping up again, with the Tamou deposit producing 1565 tU in 2006.  In 2009 overall production was 1808 tU.  Mill capacity is being increased to 3000 tU/yr.  Somair has produced more than 44,000 tU. It has started groundworks for a new 1.4 Mt per year heap-leach operation while planning for the next deposit, Artois, deeper (90 metres) and at a lower grade (0.20 - 0.25%). Mine operations are certified under ISO 14001 for environmental management.

Akouta 

The Compagnie Miniere d'Akouta (COMINAK) was set up in 1974 and started production from the Akouta deposit, a few kilometres southwest of Akokan, and also from Akola. This is an underground operation at a depth of about 250 metres. Mill capacity is about 2000 tU/yr. Cominak has produced more than 55,000 tU, and 2006 production was 1870 tU from 0.45 - 0.55% ore. In 2009 production was 1435 tU.  Cominak has been engaged in a process to improve its competitiveness so that it can continue to rank among the world's top producers. Production is currently switching to the new deposit of Ebba/Afasto. Mine operations are certified under ISO 14001 for environmental management.

SOMAIR is 63.4% owned by Areva NC and 36.6% by Office National des Ressources Minieres du Niger (ONAREM) through Sopamin, the Niger mining assets company. COMINAK is 34% owned by Areva NC, 31% by ONAREM through Sopamin, 25% by Japan's Overseas Uranium Resources Development Co. (OURD) and 10% by Enusa SA, Spain.

In 2004 Cogema Niger (now Areva NC) and the Niger government signed an agreement to undertake major exploration in the area.

At the end of 2005 Niger's Reasonably Assured Resources (RAR) were 173,000 tU at less than US$ 40/kg, and a further 7000 tU at up to 80/kg. Inferred Resources are 45,000 tU at up to $80/kg. All are in sandstone.

Imouraren 

Development of the large Imouraren deposit about 70 km south of Arlit and Akokan was confirmed in January 2008, after Areva agreed to increase royalty payments to the government by 50%, following a 2006 agreement.  In January 2009 Areva announced that it had been awarded a mining licence and that it would hold 66.65% of the project, with the Niger government's Sopamin holding the balance in a joint venture: Imouraren SA. In December 2009 Korea Electric Power Co (Kepco) agreed to take a 10% interest in the operating company from Areva, and 10% of the product, for a single payment of EUR 170 million.  This is in line with Kepco's 2.5% equity in the new Georges Besse II enrichment plant in France.  Ownership is now Areva 56.65%, Sopamin 33.35% and Kepco 10%.

The Imouraren project is a EUR 1.2 billion investment, and Areva will also spend EUR 6 million per year on health, education, training, transport and access to water and energy for local people.  Areva is aiming for initial production in 2013, ramping up to 5000 tU/yr from late 2014 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 deposit covers 8 km by 2.5 km and contains 146,000 tonnes of measured and indicated uranium resources at 0.11% U.  Average depth is 110 m and maximum thickness 60 m.  An earlier Imouraren joint venture agreement was signed in 1974 but development stalled on economic grounds. 

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).

Azelik 

The mine is 160 km southwest of Arlit and 150 km northwest of Agadez, in the Agadez region. Azelik is being developed with major SinoU equity and came into production at the end of 2010. It will ramp up to 700 tU/yr. The Teguidda/ Azelik deposit is reported to have resources of 13,000 tU at 0.2%. The Azelik project is owned by Societe des Mines d'Azelik SA (SOMINA), a joint venture established in 2007 with equity 37.2% SinoU, 33% Niger government, 24.8% ZXJOY Invest (Chinese) and 5% Trendfield Holdings Ltd. Parent company Trendfield Energy and Resources is a China-based “private international mining and consulting firm”. SinoU says it hopes to raise production to 2500 t/yr by 2015 and double that by 2020

SinoU and China’s ZTE Energy Corporation have also established a joint venture to carry out uranium exploration near the Azelik mine.  ZTE is quoted as jointly developing the Azelik uranium mine with SinoU.

Madaouela 

The Madaouela deposit is close to the Arlette and Akouta mines in the Arlit region of the Air Massif.  Trendfield (25%) and Govi High Power Exploration Inc (GoviEx) Uranium formed the GoviEx Niger JV in 2007 to explore the Madaouela (6190 tU) and Arnou Melle deposits, but Trendfield then exchanged this equity for a 10% share of GoviEx.  SinoU is understood to hold some equity in the project. In August 2008 Cameco bought an 11% share in the company for US$ 28 million, with options to increase that share to 48%.  It is moving to establish NI 43-101 compliant resource data.

Trendfield formed the UREX joint venture (approx 50:50) with Australia’s Artemis Resources to explore the Tagaza deposits adjacent to Teguidda.  In 2009 it agreed to sell its 5% of the Teguidda deposit to Korea Resources.

In April 2007 the government issued uranium exploration permits to Areva, Rio Tinto and others for the Tchirozerine area, 40 km northwest of Agadez. An Indian company took out an exploration licence in the Arlit region.

Niger Uranium Reserves and Resources

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 (US$ 57) per kilogram, and in 2007 this was increased to 40,000 CFA (US$ 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 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 November 2009 Global Atomic Fuels Corp., a private Canadian company, has six concessions around Agadez. It has announced a 2000 tU indicated resource and 21,000 tU inferred resource at its four Tin Negouran and two Adrar Emoles concessions, with ISL potential. In September 2010 it announced that a preliminary economic study on the Dasa open pit on the Adrar Emoles tenement was favourable, with head grade about 0.01%.

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 was proceeding with the takeover of NGM, in line with recommendation of NGM directors.

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.

Main References:Areva NC.
OECD NEA & IAEA, 2006, Uranium 2005: Resources, Production and Demand.
WISE.