- Orano files a second arbitration case against Niger over disputes with its Somaïr subsidiary amid ongoing political tensions.
- Niger blocked the sale of 1,300 tons of uranium concentrate, leading to a €133 million loss for Orano in 2024.
- The legal battles could impact global uranium supply and shape future foreign investment in politically unstable regions.
Orano has escalated its dispute with Niger by filing a second arbitration case at the International Centre for Settlement of Investment Disputes (ICSID). The French uranium giant owns 63.4% of its Somaïr subsidiary, while the Nigerien government controls the remaining shares.
Since the military coup in July 2023, Niger’s leadership has tightened its grip on key resources, especially uranium. This shift has created significant challenges for Orano, which relies heavily on Niger’s uranium supply. The company accuses the Nigerian government of obstructing its operations and blocking the sale of uranium.
Orano claims Niger halted the sale of 1,300 tons of uranium concentrate, worth approximately €250 million. These disputes prompted Orano to stop production at Somaïr on October 31, 2024. The French company reported a €133 million loss in the first half of 2024, mainly due to these Niger-related disruptions.
After several failed attempts at negotiation, Orano turned to arbitration to seek damages and assert its rights over the uranium stockpile. Niger, the fourth-largest uranium producer globally, plays a crucial role in the world’s nuclear energy supply, particularly for Europe.
Orano, which holds 90% state ownership by France, heavily depends on Niger’s uranium for its operations. However, the company faces growing difficulties as Niger’s new regime asserts more control over its resources. The political tension continues to expose business risks in unstable regions.
This recent arbitration follows an earlier case in December 2024. Orano filed the first claim after Niger revoked its permit for the Imouraren site, one of the world’s largest uranium deposits, with reserves estimated at 200,000 tons.
These legal battles carry significant implications for both the global uranium market and economic relations between France and Niger. Uranium is essential for nuclear power, and disruptions in Niger could severely affect global supply chains. Orano’s ongoing struggles in Niger highlight the risks that companies face when investing in geopolitically sensitive regions.
The arbitration outcome may shape the future of uranium production in Niger and influence how other international companies handle similar risks. As the tension between Niger and France continues, the situation underscores the fragility of foreign investments in politically volatile regions.
Orano’s challenges in Niger reveal the increasing pressure on foreign companies as governments in resource-rich nations seek greater control. The outcome of this arbitration could set an important precedent for future disputes, especially in industries that rely on critical resources like uranium.