The Republic of Niger has increased its stake in the Madaouela uranium project in the northern part of the country as it seeks to revive its uranium industry and attract new investment.
Under a new mining agreement signed last week, the Nigerien Government now holds a 40 per cent stake in the project, while Australian company Atomic Eagle retains the remaining 60 per cent.
The agreement forms part of the government’s efforts to secure a greater share of revenue from the country’s mineral resources while diversifying its international investment partners.
Hoskins Philip Ross, Managing Director of Mamico, described the agreement as an encouraging sign that international institutions continue to assess investment opportunities in Niger’s uranium sector.
“It is an encouraging sign showing that major international institutions continue to assess investment opportunities in Niger’s uranium sector. Atomic Eagle will similarly seek to attract international investment and financing for the development of Madaouela,” Ross said.
Atomic Eagle said it would accelerate preparations for the project and seek financing for construction, with the aim of achieving construction readiness within about two years.
The development followed a separate agreement with the U.S. International Development Finance Corporation for financing of up to 414.2 million dollars for the Dasa uranium project, being developed by Global Atomic in Niger.
The Nigerien Government said increased state participation was part of a broader strategy to ensure that more mining revenues remained in the country.
However, economist Issoufou Boubacar Kado said the development should not yet be regarded as full economic sovereignty.
“I don’t think we can talk about economic sovereignty at the moment. What we can talk about is control over raw materials. That means we should decide who works with us. Before, it wasn’t like this. Niger could not have a partner in uranium or elsewhere other than France,” Kado said.
Niger’s uranium sector is emerging as a key test of the government’s new mining policy as it seeks to increase national control over strategic resources while attracting the foreign capital and technical expertise needed to develop them.
Africanews
