French nuclear group Orano has announced that authorities in Niger have taken "operational control" of its uranium mining unit, in an escalating conflict between the company and the country's ruling junta.
The junta, which took power in a coup in July last year, has vowed to revamp regulation of the mining of raw materials by foreign companies.
In June, authorities withdrew Orano's permit to exploit one of the largest uranium deposits in the world, Imouraren – which holds an estimated 200,000 tonnes of the mineral. Niger is the world's seventh-largest uranium producer.
By late October, the French group had suspended production by its local unit Somair, in the northern Arlit region, due to what it termed increasingly difficult operating conditions and financial issues.
The company has also criticised the impossibility of exporting uranium, since Niger closed its border with Benin for what Niamey says are security reasons.
Orano holds a 63.4 percent stake in Somair, while the Nigerien state owns 36.6 percent.
In a statement released on Wednesday, the French group said: "For several months, Orano has been warning of the interference that the group has been suffering in the governance of Somair. The decisions taken at the company's board meetings are no longer being applied and, as a result, Orano is today confirming that the Nigerien authorities have taken operational control."
This latest clash between the junta and Orano – majority owned by the French state – comes as Niger downgrades links with its former colonial power France, and strengthens ties with Russia and Iran.
Last month, Nigérien Mining Minister Ousmane Abarchi invited Russian firms to invest in uranium and other natural resource production in the country.
Niger embraces Russia for uranium production leaving France out in the cold
'Heavy burden on employees'
Orano said Somair's board had decided on 12 November to suspend expenses related to production activities "in order to prioritise the payment of salaries and preserve the integrity of the industrial facilities".
But days later, a delegation of the regime's advisers visited the Somair mines in Arlit to encourage work there to continue – a move that prompted Orano to declare enforcement of the board's decision "is being deliberately prevented".
"The production expenses which continue to be incurred on the site are worsening the company's financial situation with every passing day," its statement said.
It added that "representatives of Niger" defended their position at a board meeting on Tuesday, "in particular confirming their refusal to export the production".
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A total of 1,150 tonnes of uranium concentrate from 2023 and 2024 stocks – the equivalent of almost half of annual production in Arlit – are being blocked, according to Orano – stocks worth around €200 million.
"Orano expresses its deepest regret regarding the evolving situation which is placing a heavy burden on the employees and local communities," the company said. "Orano intends to defend its rights before the competent bodies, and reaffirms its belief that only a united effort by all stakeholders to re-establish a stable and sustainable mode of operation can allow Somair to resume activities in peace."
