French nuclear giant Areva announced a deal with Niger on Sunday fixing uranium prices for the next two years and green-lighting production at the billion-euro (1.5-billion-dollar) Imouraren site.
The agreement marks a return to harmonious relations with the west African state after authorities deported a local manager in July amid accusations Areva was financing a Tuareg rebel group in an alleged bid to discourage competitors.
Shortly afterwards, the Niger government — seeking to exploit skyrocketing prices — announced an end to Areva's monopoly in the sector.
Areva denied the allegations, with the backing of the French government, which supplies eight million euros in aid annually to Niger.
The Imouraren site is expected to begin production at the end of 2010, while increases of around 50 percent in the price Areva will pay to extract the precious ore have also been set in stone, according to the company's website.
Imouraren will lift Niger to second in the uranium-producing world rankings with almost 5,000 tons of uranium produced annually and create 1,400 permanent posts, said an Areva spokesman.
Areva is Niger's top private employer and has operated two uranium mines in the country for the past 40 years.
