Niger — one of the world's poorest countries — could become considerably wealthier if its uranium resources were fully exploited, but political instability is hampering its development.

The land-locked country's uranium resources total 311,000 metric tonnes (mt), the third highest in Africa after Namibia (470,000 mt) and South Africa (320,000 mt), according to Statista. It has the continent's highest-grade uranium ores. In 2022, it produced 2,020 mt of uranium, down from 2,991 mt in 2020, according to the World Nuclear Association (WNA).

By 2022, Niger was the world's seventh-biggest producer of uranium but accounted for only 4% of global production, well behind Kazakhstan (43%), Canada (15%), Namibia (11%) and Australia (8%), according to the WNA.

Niger — West Africa's biggest country by geographic area — has one major mining operation near the city of Arlit, in the country's northwest. It consists of several open-pit mining sites. It is operated by Somair, a joint venture between Orano, the French state-owned nuclear fuel cycle company, and Sopamin, Niger's state-owned mining company. The mine is nearing depletion but its operation has been extended until 2040.

An underground mine near Akokan, southwest of Arlit, produced 75,000 metric tons of uranium from 1978 until March 2021, when it closed after its ore reserves had been depleted. It was operated by Cominak (59% owned by Orano, 31% by Sopamin and 10% by Enusa, the Spanish-state-owned nuclear energy company). Cominak is now working on a project to redevelop the sites.

Furthermore, there is the Imouraren deposit, located about 80 km south of Arlit and, at 200,000 mt, containing one of the world's largest uranium reserves. An operating mine permit was awarded to Orano in 2009 but work to bring the mine into operation was suspended in 2014 until uranium prices improved. Orano holds a 63.52% stake in the mine but had its licence to develop it revoked by the Nigerien regime in June.

In July 2023, Niger's democratically elected President Mohamed Bazoum was overthrown in a military coup d'état, after which the military leadership expelled French forces and ended a long-standing security agreement with the US, giving Washington until mid-September to withdraw its troops. At the same time, 100 Russian military instructors arrived in Niamey in April to train Niger's forces on Russian air defence systems.

The putschists cited the country's worsening security situation as justification for the power grab. They suspended the country's constitution and installed General Abdourahmane Tchiani as head of state. He was still in charge by July 2024 and a return to civilian rule seems unlikely while jihadist attacks continue. Bazoum was the first elected leader to succeed another in Niger since independence from France in 1960.

Niger is a key part of the African region known as the Sahel — a belt of land that stretches from the Atlantic Ocean to the Red Sea. The area has been plagued by jihadist attacks and has experienced several military coups recently (two in Mali and one in Burkina Faso, as well as the one in Niger). As well as jihadist groups, Wagner mercenaries from Russia — who are active elsewhere in the region — have been exercising a malign influence in Niger.

At 10.4%, the IMF is forecasting that Niger will have the world's third-fastest growing economy this year after Guyana and Palau. However, that forecast was made on the basis that the country would start exporting a lot more oil this year and that is no longer certain. The economy grew by only 1.4% last year and is forecast to expand by 6% next year.

Niger has only an $18.8bn economy despite a population of 28m people, according to the IMF. Income per head is only $670 a year. Inflation stands at 6.4% and general government gross debt to GDP was 49%, below the sub-Saharan African average. Its capital city is Niamey, which has a population of 1.3m.

In the immediate aftermath of the coup, Niger faced economic sanctions from the Economic Community of West African States (Ecowas), the regional political and economic union of 15 countries located in West Africa. In January 2024, it left Ecowas but, in February 2024, the grouping lifted its sanctions against Niger. The country still uses the CFA Franc and remains part of the West African Economic and Monetary Union, the currency union.

In January 2024, the government temporarily suspended the granting of new mining licences, the first step in an audit of its mining sector as it sought to boost government revenue. The country wanted to take stock of existing mining licences and understand better what reforms were needed so that the state could increase its profits.

On June 22, the Nigerien junta withdrew Orano's licence for the future development of the Imouraren mine. Analysts explain that the company has been bearing the brunt of diplomatic tension between France and the junta. Ex-president Bazoum had been an ally of France.

Orano began exploratory work at the beginning of June 2024, so that it could start testing and exploiting the deposit in 2028. The junta says that Orano was given ample time to develop the mine. China had the concession to develop the mine until 2009 and there is speculation that it could now be passed back to a Chinese firm or even handed over to a Russian one.

Moreover, governments around the world are looking to secure supplies of uranium as fuel for their nuclear power projects, creating an opportunity for Niger. Many depend on Russia for nuclear fuel supplies but have been trying to move away from this amid Russia's ongoing war in Ukraine. In May 2024, the US Senate passed a bill banning the import of low-enriched uranium from Russia. French nuclear power plants source less than 10% of their uranium from Niger.

Niger's mining sector is a vital part of the nation's economy and has tremendous potential. Uranium and gold are the primary minerals extracted but cement, coal, salt and silver are also mined. It is rich in other key minerals, including iron and phosphate. According to data from the World Bank, uranium is Niger's second largest export, in monetary terms, after gold. Uranium was first discovered at Azelik, 160 km southwest of Arlit, in 1957. Around 140,000 mt of uranium has been extracted since commercial mining began in the country in 1971.

In recent years, gold mining has gained prominence, owing to discoveries and increased extraction efforts. The main gold mining areas are located in the west of the country, with the Djado and Samira Hill mines among the most significant. Artisanal mining also plays a crucial role in gold extraction. It provides a livelihood for many local communities.

The country's coal reserves are mainly situated in the Agadez region. Phosphate deposits are primarily found in Tahoua and Agadez.

Recently, China National Uranium Corporation has been carrying out studies towards the restart of uranium production at Azelik, according to social media posts by Niger's Minister of Mines Ousseini Hadizatou Yacouba in June 2024. The mine has been in care and maintenance since 2015.

Furthermore, Dasa is a high-grade uranium deposit located 105 km south of the established uranium mining town of Arlit. First discovered in 2010, the project is 90%-owned by Toronto-listed Global Atomic Corporation and will operate under the company's Niger mining subsidiary SOMIDA (Société Minière de Dasa), which is 20%-owned by the Nigerien government Mine excavation began in 2022, with first deliveries to utilities expected to start in 2025.

Additionally, Canada-based GoviEx Uranium holds mining permits for the Madaouela project in the Agadez region. The company earlier this year had begun the project financing process to develop the project. GoviEx holds an 80% interest in the operating company COMIMA, with the remaining 20% held by the Republic of Niger.

Yet the junta is threatening to revoke its licence if it does not begin mining operations soon. GoviEx is in discussions with third parties about potential investments to expedite the project’s development.

Niger's mining sector operates under a legal framework, including the Mining Code that originates from 2006 (law No. 2006–26). Law No. 2007–01 of January 2007 further clarifies the framework for Niger's petroleum sector. The Mining Code governs mineral extraction. It sets out the rules for exploration and exploitation. The government grants exploration licences and mining permits.

However, the Niger mining sector faces some formidable challenges. Infrastructure deficits are a major concern. Roads, power and water supply are often inadequate. Uranium mining in Niger presents environmental risks such as water and air pollution, land degradation, and health hazards from radioactive materials. These activities can contaminate local water sources, degrade land and habitats, and pose health risks to communities through exposure to radioactive dust and gases. 

Socially, mining can disrupt traditional livelihoods and strain local infrastructure. Effective management of radioactive waste and adherence to stringent regulations are crucial to mitigate these impacts.

Geopolitical factors also influence the mining sector. These can affect foreign investment and commodity prices. There are also security concerns in the northern regions, where mining sites are vulnerable to insurgent activities. The presence of armed groups and the risk of conflict create barriers to investment and exploration activities.

Moreover, Niger possesses significant oil deposits — whose exploitation is the junta's current priority. In 2020, proven crude oil reserves amounted to 992.74m barrels and proven natural gas reserves 24.17m cubic metres, according to the African Petroleum Producers’ Organisation. The oil industry is predicted to generate a quarter of the country's GDP. 

A new, China-backed 1,930km oil pipeline linking Niger's Agadem oilfield to the port of Cotonou in Benin is expected to drive the country's economic expansion. The oilfield and pipeline are being developed by the Chinese through a $400m deal signed in April 2024.

The country's economic growth forecast is based on the assumption that 90,000 barrels of oil per day will be exported via the pipeline, up from the 20,000 barrels the country normally produces. The oil should generate around €610m in tax revenues by 2025.

In March 2024, CNPC, the Chinese company in charge of the project, announced the commissioning of the pipeline, enabling the first barrels to leave the country within two months. However, in June 2024, the pipeline was threatened by an internal security crisis and a diplomatic dispute with Benin, both a result of last year's military coup.

Niger has significant opportunities in mining and oil production, but persistent political and security challenges are hampering its economic development. The recent military coup and subsequent withdrawal of uranium mining licences have underscored the fragile environment within which the mining sector operates. A poor relationship with neighbouring countries is also an obstacle to exporting oil and minerals.

Uranium prices are soaring on world markets, but Niger must address infrastructure deficits and environmental concerns and navigate a difficult geopolitical situation to produce more uranium.