Orano has shared new insights regarding its operations in Niger, noting that logistical challenges are impacting uranium sales.
Despite these issues, the company has affirmed its financial projections for 2024, aiming for steady revenue and a favorable net cash flow.
The group remains committed to discussions with the government about the future of the Imouraren project.
Financial Outlook Amidst Challenges
Orano’s CEO, Nicolas Maes, highlighted that as of the end of June 2024, the company is adhering to its strategic development plans despite the worsening conditions affecting mining activities in Niger.
This situation is tied to the shifting local geopolitical landscape, yet Orano is maintaining its delivery commitments to clients.
Maes emphasized that with a positive nuclear market, the company remains on track to achieve its year-end goals, which include reducing debt and advancing its investment agenda.
He also noted that Orano’s teams are focused on building the future of the nuclear industry, including ventures in nuclear medicine and the battery sector.
Financial Performance and Forecast
The company reported an operating income of EUR12 million (USD13 million), a significant drop from EUR260 million in the same period last year, reflecting the ongoing challenges in Niger.
Nevertheless, Orano has upheld its 2024 financial forecast, targeting stable revenue of approximately EUR4.8 billion and a positive net cash flow.
Historical Context of Niger’s Uranium Industry
Orano’s involvement in Niger’s uranium sector dates back over 50 years. Currently, the company operates uranium extraction from open-pit mines at SOMAÏR (Société des Mines de l’Aïr), located near Arlit. Orano holds a 63.4% stake, with the remaining 36.66% managed by Sopamin, Niger’s state mining authority.
The company is also involved in the remediation of the COMINAK underground uranium mine, which ceased production in 2021.
Impact of the July 2023 Events
The coup d’état on July 26, 2023, that deposed President Mohamed Bazoum led to a halt in importing essential reagents, such as soda ash, carbonate, and other materials vital for SOMAÏR’s operations.
Since then, Orano has been working to find alternative supply routes and ensure business continuity. Production at the SOMAÏR processing plant resumed in early 2024 following maintenance, although sales were hampered by unresolved logistics issues.
Financial Strain and Operational Adjustments
To cope with the financial strain, Orano has been utilizing stockpiled resources initially set aside for future site rehabilitation to sustain operations and pay staff.
This reserve is nearly depleted, and the company is now focused on preserving the ongoing operation until a solution for resuming uranium exports is identified.
Imouraren Project Status
Orano plans to continue engaging with the Nigerien government after the operating permit for the Imouraren uranium mine was withdrawn. Imouraren SA, with a 66.65% stake held by Orano Expansion and the remaining 33.35% by Sopamin and the Nigerien state, was initially granted its permit in 2009, but development was paused in 2015 due to market conditions.
Given the improved market conditions, Orano submitted a technical proposal earlier this year to restart the project. Preparatory work resumed in June, but on June 20, 2024, the Nigerien authorities revoked the mine’s operating license, returning it to the public domain.
Orano has acknowledged this decision and is prioritizing the protection of its rights through legal channels. The company is considering applying for a new operating permit. Although Niger contributes to 4% of global uranium production, the loss is being compensated by increased output from other regions, notably Canada and Kazakhstan. Orano’s supplies, with Niger accounting for about 15%, will not affect nuclear fuel provisions in France.