(Ecofin Agency) – Since 2023, a standoff has been raging between Orano and Niger over SOMAÏR, the only uranium mine still operating in the country. The French group, which lost operational control in December 2024, has initiated two arbitration proceedings before ICSID.

On Thursday, June 19, the Nigerien government announced the nationalization of the SOMAÏR uranium mine, the only one still operating in the country. Accused of being the source of certain irregularities in the management of this asset, which it previously controlled 63.40% of, Orano denounced this action in a press release published the day after the announcement. Although it confirmed its intention to continue to “assert its rights ,” the French group remains rather vague about the ways and means it plans to achieve this.

In its note, the former Areva mentioned in particular the possibility of initiating “all necessary additional actions, including criminal ones” , without specifying the mechanisms envisaged in this regard. This lack of precision contrasts with the two arbitration proceedings already launched against Niamey before the International Centre for Settlement of Investment Disputes (ICSID).

Asked about the matter by Agence Ecofin , Baptiste Rigaudeau, a lawyer experienced in international arbitration, stated that the launch by Orano of a “new arbitration” regarding the nationalization of SOMAÏR is indeed conceivable. The Lead Up partner, however, believes that this scenario is ”  unlikely  ,” given that similar proceedings had already been initiated on the issue in January.   

“What they can do is add this new fact to their already-laid case, possibly arguing that there is now no longer any doubt about the state’s attitude towards Orano,” he explained. Regarding the question of claiming possible financial compensation from the Nigerien state, another lever announced by Orano, Mr. Rigaudeau believes that this action is entirely possible. 

The group may include in this request the value of its stake in the mine and the investments made for its development. It should also note the potential profits it could have received in a scenario without litigation with the Nigerien authorities.

A dispute with an outcome that remains uncertain  

By nationalizing the SOMAÏR uranium mine, Niger has exacerbated existing tensions with Orano, having successively withdrawn its export rights and operational control over the asset. This dispute comes amid diplomatic tensions between Niamey and Paris, which the Nigerien authorities accuse of destabilization attempts and supporting terrorism in the Sahel. This position is also supported by Mali and Burkina Faso, which also assert a policy of sovereignty over their mineral resources. 

This last point is also emerging in the context of the current standoff, with Niamey reporting an uneven distribution of SOMAÏR’s production. According to the authorities, Orano has removed 86.3% of the uranium stocks sold by the mine since it began operations in 1971, a share exceeding its 63.40% stake. Conversely, the public company SOPAMIN, which holds a 36.60% stake in the project, has only recovered 9.2% of the shares, we learned. 

Orano refutes this accusation, telling Reuters this week that Niger has not always exercised its rights to remove the mine, particularly when uranium prices are falling. This imbroglio has an uncertain outcome, leaving the mine’s future unclear. While Niamey is sticking to its nationalization plan, the proceedings initiated by Orano are continuing with the establishment of the arbitration tribunal by ICSID.

It should be noted that international arbitration proceedings can drag on for several years, with significant financial implications for both parties. It remains to be seen how the situation will evolve in the coming months, particularly with regard to Niger’s image among investors as a mining jurisdiction.

It should be remembered that the dispute with Orano comes on top of another ongoing arbitration procedure, this time pitting Niamey against the Canadian company GoviEx over the Madaouela uranium project.