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Uranium sows discord between Niger and France

by Staff Writers
Niamey (AFP) Nov 18, 2007
Poor and restive Niger finds itself sitting on a surprising treasure trove -- uranium. The west African state on the edge of the Sahara is the world's third largest producer of an element whose price has soared.

And the stakes are particularly high for former colonial power France: three-quarters of the nuclear-powered electricity produced by the Electricite de France uses uranium imported from Niger.

But an ongoing battle of wills between Niger's government and the French nuclear giant Areva, has soured Paris' relations with this arid nation.

Areva is Niger's top private employer and has operated two uranium mines in the country for the past 40 years. Today, it aims to hold on to its Nigerian uranium supplies even as it diversifies its sources.

The company recently acquired South-African based firm UraMin Inc., with a key uranium mining project in Namibia and exploration sites in South Africa and the Central African Republic.

Niger meanwhile wants to enlarge its slice of the investment pie, notably by diversifying its partners -- starting with companies from China, which has an ever-growing presence on the African continent.

Helping Niamey's cause is the skyrocketing world price for uranium, zooming from seven dollars a pound (2.2 euros per kilogramme) in 2002, to 85-90 dollars a pound (38 - 40 euros a kilo) in June.

"We have nothing against competition," an Areva official said. "There's enough room for everyone."

But Areva quickly found itself in the line of fire, when authorities in July deported its local director Dominique Pin -- an unprecedented move in bilateral relations.

Officially, Pin was accused of financing a Tuareg rebel group, the Movement of Niger People for Justice (MNJ) which operates in the uranium-rich north, in an alleged bid to discourage Areva's potential competitors.

On August 5, the Niger government announced an end to Areva's monopoly in the sector.

Areva has denied the allegations, with the backing of the French government, which supplies eight million euros (12 million dollars) in aid yearly to Niger.

"Areva does not support the rebellion. There must no longer be any ambiguity between Areva and Niger, just as there is no ambiguity between Niger and France," French minister for cooperation Jean-Marie Bockel said during an emergency August trip to Niger to sort out the dispute.

Two days previously, Areva and Niger quietly signed, in France, new agreements for 2007 that sharply raised the selling price for Niger's uranium to 40,000 CFA francsa kilo (61 euros per kilo, 40 dollars per pound) compared to the previous price of 27,300 CFA francs per kilo price tag.

In addition, for the first time Niger will be allowed to sell directly on its own account 300 tonnes of uranium, 100 this year and 200 in early 2008.

While Niger's President Mamadou Tandja has vowed he has no intention of getting rid of Areva, other Nigerian officials are privately bitter.

"I won't forget that when (uranium) prices were at their lowest, Areva continued to pay us for uranium well below the going rate," said one Niger government minister who asked not to be named.

The tension will likely calm down -- particularly since a visit to Paris by President Tandja appears to be in the works -- but there is plenty riding on a smooth outcome.

Areva and Niamey began negotiations in October for what share of uranium Niger will market in 2008, as well as price and exploration permits for the metal.

And negotiations are also ongoing over the exploitation of Areva's Imouraren exploration site -- its biggest in the country. The site is expected to begin production at the end of 2010, with an initial annual production estimated at 5,000 tonnes.

Niger is expected to contribute part of the billion-dollar initial investment in the project.

"Imouraren means that we'll be there for another 40 years," one Areva official said.

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Indo-US nuclear pact not out of woods: analysts
New Delhi (AFP) Nov 18, 2007
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