French Nuclear Giant Orano Suffers Loss Due to Niger’s Political Turmoil
French nuclear giant Orano has reported a loss of €133 million for the first half of the year, largely due to difficulties in its mining activities in Niger. The company’s chief financial officer, David Claverie, attributed the loss to the “highly degraded” political context in Niger since a military regime took power a year ago.
The coup d’état in Niger led to a halt in imports of critical materials necessary for uranium exploitation in Orano’s Somaïr mine. Although uranium extraction continued in the first quarter of 2024, sales were unable to resume due to a lack of logistics solutions approved by the Niger authorities. The blockage led to financial difficulties for the mine, which could eventually lead to insolvency in the short to medium term.
Niger’s junta recently withdrew the licence of Imouraren SA, a company jointly operated by Orano, Niger Mining, and Korea Electric Power, which ran the Somaïr mine. Claverie warned that the situation could lead to insolvency in the coming months.
Despite the challenges in Niger, Orano is seeking to reassure clients about supply security, citing the diversity of its supply sources in other regions. The company has been gradually moving away from Niger’s uranium, with Kazakhstan and Canada emerging as major suppliers. France has also been exploring possible cooperation with Mongolia.
France’s reliance on nuclear energy is set to grow substantially in the coming years, with nuclear generating 70.6 percent of the country’s electricity supply. The French government has called for a “nuclear renaissance” to reduce dependence on fossil fuels, with plans to build 14 new nuclear reactors.
Orano’s troubles in Niger come as France’s energy consumption is increasingly reliant on nuclear power. The company’s outlook for the end of the year remains stable, with revenues expected to reach around €4.8 billion and a pre-tax margin rate on revenue maintained between 22 percent and 24 percent.
