The one thing the market hates is uncertainty.
Now a geopolitical supply shock for uranium is set to put even more pressure on the u-spot price, which has moved up $12 since August 2023 to a 12-year high of US$71/lb.
Paris: There is now deep uncertainty for European uranium and energy supply after French President Macron announced he will pull all military and diplomatic personnel out of Niger.
“We are putting an end to our military cooperation with the de facto authorities of Niger because they don’t want to fight terrorism anymore,” President Emmanuel Macron told French TV Sunday.
Niger is home to major uranium operations by French multinational Orano, along with major tenements for uranium miners, notably Canadian company Global Atomic Corporation.
On its website, Orano says of its Niger operations:
Orano is represented in Niger through its three subsidiaries SOMAÏR, COMINAK and IMOURAREN. SOMAÏR has been mining several uranium deposits in northwestern Niger since 1971. Active since 1978, the COMINAK deposits will cease all activity on March 31, 2021. The IMOURAREN site, one of the world’s largest deposits, will be brought onstream as soon as market conditions permit.
The news is a major blow to European uranium supply certainty – for which Niger provides about 25% of much-needed yellowcake – or 5% of total global supply.
France generates about 70% of its electricity from a fleet of nuclear power plants, making it one of the world’s lower carbon-intensive major nations.
EU nations are bringing back nuclear power as a way to reach NetZero goals. Nuclear fuel buyers may be forced to look elsewhere for supply, presuming French national operations with Orano cannot continue under French military and diplomatic support.
The democratically elected President of Niger, Mohamed Bazoum, was arrested by military coup leaders in July, who took control of key government facilities. The coup was seen as backed by Russia, who are playing a game of geopolitical chess in Africa, to secure natural resources.
Niger’s Strategic Position
According to World Nuclear Association, Niger has two significant uranium mines in the north, providing about 5% of world uranium mining output from Africa’s highest-grade uranium ores.
Niger was one of the few democracies left in the Sahel belt, which stretches across the continent. The nation had been friendly to France and the United States, hosting small military bases for each respective nation.
Niger was seen as a key ally in fighting Islamist extremists in the region.
BREAKING: France is pulling its troops out of Niger.
— Larry Madowo (@LarryMadowo) September 24, 2023
“We are putting an end to our military cooperation with the de facto authorities of Niger because they don’t want to fight terrorism anymore,” President Emmanuel Macron says pic.twitter.com/DrC3uqQN7l
