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France’s Orano says it has lost control of uranium mine in Niger
Global Banking & Finance Review®
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PARIS (Reuters) – French nuclear fuels company Orano said on Wednesday that it had lost control of its Somair uranium mine in Niger, with board decisions no longer being followed and Niger authorities having taken control.
PARIS (Reuters) – French nuclear fuels company Orano said on Wednesday that it had lost control of its Somair uranium mine in Niger, with board decisions no longer being followed and Niger authorities having taken control.
The company, which holds a more than 60% stake in the mine, said it has been warning for several months of interference in governance at Somair, where it was forced to suspend production after authorities halted exports last year.
Niger accounts for about 4% of global output of uranium, the most widely used fuel for nuclear energy, and Orano has operated mines in the country for years.
However, the business climate for international companies in Niger has become uncertain after a military coup last year.
Orano said a resolution adopted by the Somair board on Nov. 12 to suspend expenditure related to production to preserve funds for salaries was being deliberately ignored.
The production expenses that continue on the site are further deteriorating the company’s financial situation,” it said in a statement.
Niger accounted for about 15% of Orano’s uranium supplies when its mines were operating at full capacity. The company has said the halt in exports from Niger has been fully offset by a ramp-up of mines in Canada and Kazakhstan.
(Reporting by Dominique Patton and Benjamin Mallet; Editing by David Goodman)
Uranium is a heavy metal used as fuel in nuclear reactors. It is a key element in the production of nuclear energy and is mined in various countries, including Niger.
Corporate governance refers to the systems and processes that direct and control a company. It encompasses the relationships among stakeholders and the rules that govern the management of the company.
An investment portfolio is a collection of financial assets such as stocks, bonds, and cash equivalents. It is managed to achieve specific financial goals.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly. It can lead to widespread economic disruption and loss of wealth.
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