Niger issues new uranium permit, seeks advantageous terms
An Indian company says it has acquired some uranium exploration and mining rights in Niger. But while Niger is keen to welcome foreign uranium companies, it has signalled its determination to maximise its gains.
Taurian Resources, a private mining and engineering company based in Mumbai, has announced that it has secured a permit giving it uranium exploration and mining rights over 3000 sq km in the Arlit region of Niger.
Exuberant statements from the company's managing director, Sachin Bajla, assert the area is likely to hold at least 30,000 tonnes of uranium, although virtually none has been evidenced so far. Bajla added that an investment of at least $6-7 billion will be needed to exploit the potential of the deposit, and that he hopes to raise some of the money by listing his company on the London Stock Exchange.
Although Bajla is reported to be looking for support from the Indian government, Atomic Energy Commission chairman Anil Kakodkar, described the development as a "bold forward-looking private venture," with no major role for the government at present.
India has an ambitious nuclear energy program but does not have abundant uranium resources of its own and is limited by its status as a non-signatory to the Nuclear non-Proliferation Treaty (NPT), meaning that it cannot easily import uranium from other countries. At the moment it is involved with negotiations with the USA that could open the door to bilateral and possibly international nuclear trade.
However, Niger is not a member of the Nuclear Suppliers Group - the international group of some 47 countries that controls nuclear trade - and reports suggest this could make it easy for India to access any uranium Taurian finds in Niger. If uranium is found, the government of Niger will hold part rights over uranium sales.
Niger was the fourth largest uranium producer in the world in 2006 and has two operating uranium mines, with French and Chinese companies working to develop two other deposits. Both existing mines are operated by companies majority owned by Areva of France. Areva recently agreed to increase the share of profits from the mines that it pays to the government of Niger to bring it into line with world uranium prices, as well as giving Niger the right to sell 300 tonnes of the uranium on the open market. However, the government of Niger has announced that it will be starting talks to seek even more advantageous terms for the contracts for 2008-2010. "We are in a situation where we have strength on our side, and we are going to take advantage of it," said Sorry Boubacar, spokesman for Niger's President Mamadou Tandja.
Niger has said it aims to more than double its uranium output over the next four years as the new mines at Imouraren and Teguida open, and has awarded a reported 89 exploration licenses to foreign companies. However the uranium mining areas are torn by sectarian troubles, and uranium projects have been the target of attacks and a kidnapping in recent months.
Further information
WNA's Nuclear Power in India information paper
WNA's Uranium in Niger and Gabon information paper
WNN: Troubled Niger to earn more from uranium
WNN: US-India agreement rumbles towards next sticking point
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