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Oil and mining industry of Niger

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Known and exploited Mineral resources of Niger, data derived from US Geological Survey. Colored circles represent current mining centers. Unexploited but proved resources in parentheses. * Gold: Au * Coal: C * Diamond: Dm * Iron ore: Fe * Limestone: Ls * Phosphate: P * Petroleum, crude: Pet * Tin: Sn

The mineral mining industry is a crucial piece of the Economy of Niger. Exports of minerals consistently account for 40% of exports.

Mineral commodities produced in Niger included cement, coal, gold, gypsum, limestone, salt, silver, tin, and uranium. In 2006, Niger was the world's fourth-ranked producer of uranium.[1] A new mining code was adopted in August 2006 and the former National Mine research Office (ONAREM), whose responsibilities included organizing mining exploration programs, was replaced by two newly established entities: the geological and Mining Research Center and the Mining Company of Niger (SOPaMin). SOPaMin is to hold the state's shares in the existing uranium companies and is in charge of engaging in commercial transactions, such as uranium sales. Since the adoption of the new Mining Code, the government has issued a significant number of new mineral exploration permits. Niger joined the Extractive Industry Transparency Initiative (EITI) in 2005 and, as part of the EITI efforts, appointed in late 2006 a national consultative committee, which included representatives of the general public. A first audit report reconciling revenue paid by mining companies with government receipts was scheduled to be issued in late 2007.[2][3]

Following the 2023 Nigerien coup d'état, the mining ministry suspended the granting of new mining licenses while it conducted an audit of the sector.[4][5]

Minerals in the National Economy

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In 2006, Niger's mineral sector accounted for about 3% of the GDP and for about 40% of exports. according to the International Monetary Fund (IMF), a renewed interest in the generation of nuclear energy had led to increased demand for uranium, encouraged investment expansions at existing uranium mines, and promoted exploration. Foreign direct investment in the sector by renowned French company AREVA from 2008 to 2012 was projected to be $1.4 billion, which would double the country's uranium production capacity[2][6]

Uranium

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Main articles: SOMAIR, COMINAK, and Imouraren mine
Arlit mine open pit uranium mine operated by SOMAIR near Arlit, Niger

Niger produces about 5% of world uranium output, providing Africa's highest-grade uranium ore. It produced 2,020 tonnes of uranium in 2022, down from 4,821 tonnes in 2012 and 2,991 tonnes in 2020.[7][8]

From the 1950s, Niger has been known to have large uranium deposits in the desert north of the Agadez Region, which is located about 1,000 kilometres (620 mi) northeast of Niamey.[2] In 1971, the first mine was opened outside Arlit and operated by SOMAIR, a national company with Areva and the government of Niger as shareholders. SOMAIR was owned by Areva (63.4%) and the government of Niger (36.6%), and employed about 600 people.

From 1978 to 2021, the second uranium mining project in Akokan near Arlit produced 75,000 tonnes of uranium.[7] It was operated by COMINAK, a national company, like SOMAIR with Areva and the government of Niger as shareholders. COMINAK was owned by Areva NC (34%), the government of Niger(31%), Overseas Uranium Resources Development Company of Japan (25%), and Enusa industrias avanzadas, S.a. of Spain (10%). It employed about 1,100 people. The underground mine of Akokan was the largest underground uranium mine in the world.[9] The mining activities created an economic boom in the country, as Nigerien budgets flourished in the 1970s due to record uranium prices. Extracted uranium from SOMAIR and COMINAK was initially sold entirely by French concessionary corporations, with contracts later revised to give Niger both an overall contract payment, rent, and a smaller amount of ore it could sell on world markets.[10]

In addition to the mines of SOMAIR and COMINAK, the Azelik mine at[clarification needed] 200 kilometres (120 mi) of Arlit was opened in 2011 and operated by SOMINA. The stakeholders in SOMINA are:

  • China National Nuclear Corporation (37.2%)
  • the government of Niger through the national mining company (SOPAMIN) (33%)
  • ZXJOY, a Chinese company (24.8%)
  • KORES, a Korean national company (5%).

Uranium ore mined in the Arlit area (Agadez Region) is extracted as triuranium octoxide (U3O8).

  • The SOMAIR mine had uranium reserve of 14,000 tonnes (with U3O8 @ 0.3%) as of 2011 and a production capacity of 2,700 tonnes per year.[11][12]
  • The COMINAK concession totaled 29,000 tonnes (U3O8 @ 0.4%) and had a production capacity of 1,500 tonnes per year.[11][12] The Azelik mine operated by SOMINA had a production rate of 700 tonnes per year in 2011, and was expected to increase to 2500 tonnes per year by 2015.[needs update][13]

The Imouraren mine, construction currently suspended,[14] is expected[when?] to have the largest uranium reserves in Niger (120,000 tonnes) albeit at a lower concentration of uranium (U3O8 @ 0.15%).[11] The mine, located about 80 kilometres (50 mi) south of Arlit, was granted in July 2006 to Areva for an ore body originally discovered in 1969. One hundred people were employed at the site in 2006; more than 55 kilometres (34 mi) of development drilling had been completed at the site during a period of one year and more than 2 tonnes of ore had been shipped for testing to Areva's laboratories.[2][15] It was however decided in 2014 by Areva and the government of Niger following new contract discussions that plan to launch the mine will delayed pending favorable market conditions.[clarification needed][16]

The Nigerian people believe that the partnership with France is quite unequal.According to Niger Energy Minister, in 2010, Niger exported nearly 3.5 billion euros of uranium mines to France, but only earned 459 million in profits. Since the coup in Niger at the end of July 2023, calls for France to withdraw have never stopped due to local opposition. In addition to raising prices, the military government also threatened to ban France from continuing to mine uranium.

In june 2024, the military government of Niger decided to revoke the uranium mining license of the French state-owned Orano Nuclear Energy Group in the Imouraren mine in the country. The mine is located west of Ayr in northern Niger and is considered one of the largest uranium deposits in the world, with reserves of 200,000 tons, later in july, the Niger government decided to revoke the Madaouela uranium mine license of Canada's GoviEx Uranium.

In July 2024, the U.S. African Discovery Group signed a letter of intent for a uranium exploration licence for the Ouricha-3 deposit, in the Agadez Region 20 km south of the Imouraren mine.[17]

As of August 2024, Global Atomic is continuing to develop its Dasa Uranium mine and processing plant, which employs over 450 people increasing later to 900. It is expected to be the highest-grade uranium project in Africa and start operating in 2026. It is located about 35 kilometres (22 mi) southeast of the Ouricha-3 deposit.[18][17]

In December 2024, Orano announced that it had "lost operational control" of its mining subsidiary Somaïr in Niger.[19]

Coal

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Main article: Coal mining in Niger

The history of coal exploration and mining dates back to 1968 when coal reserves were discovered in Anou Araren by an exploration team led by the French Atomic Commission Commissariat à l'énergie atomique. This discovery and the parallel discovery and exploitation of uranium mines in the same region of Niger lead to the creation of SONICHAR in 1975. The goal was to mine coal which will be used as a fuel to power the thermal power plants in order to supply power to uranium mining activities in Arlit. In 1980, coal mining began at Anou Araren and a year later, the thermal power plant was in operation. Since then, coal mining projects have stagnated. In 2008, coal reserves . In 2014, construction for the second coal mine began in Salkadamna in Takanamatt, Tahoua Region. The coal extracted from the mine will supply a 600 MW power plant and coal briquette plant adjacent to the mine.[20]
The Anou Araren coal reserves are estimated at 15 million tonnes and in 2011, 246,016 tonnes of coal were extracted from the mine.[21][22] The coal reserves at Salkadamna are estimated at 70 million tonnes.[21]

Gold

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Main article: Samira Hill Gold Mine

Exploitable deposits of gold have long been known to exist in south western region of Niger and more recently in northern region of Agadez. Artisanal gold mining was already conducted between the Niger River and the border with Burkina Faso.[23] In 2004, the Samira Hill Gold Mine, operated by Mining company of Liptako, began production. The mining company of Liptako owned by two Canadian companies at 40% each and the government of Niger at 20%. The gold production in 2011 is 1,564 kg from this mine and has decreased steadily since 2008.[24] In 2014, two gold deposits have been found in the Agadez Region in Djado and Mount Ibl, 700 and 360 km from Agadez city, respectively.[25][26] The site in Djado was discovered in April 2014 and resulted in a gold rush that attracted local inhabitants of Agadez as well as prospectors from neighboring countries like Chad, Sudan and Burkina Faso. Activities at the Djado site were temporarily ceased in order to organize exploration and artisanal extraction activities, to improve infrastructures, principally water supply and to improve the security presence. The site near Mount Ibl was discovered in September 2014. Exploration permits are required for all prospectors prior to accessing the sites.

Cement

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The cement extraction industry has existed in Niger since 1964 when the Malbaza cement plant was opened.[27] Located in the Tahoua Region, the cement plant has been the only such project until 2014. In 2011, work for expanding the cement plant of Malbaza began with the expectation to increase its production capacity 13-fold. In 2014, work began for a new cement plant in Keita in the Tahoua Region.[28]
The Malbaza cement plant presently produces 40,000 tonnes per year and, upon expansion, is expected to reach 540,000 tonnes per year.[27] The Keita cement under construction is expected to produce 1 million tonnes per year at startup and 1.5 million tonnes per year afterwards.[28]

Oil industry

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See also: Petroleum industry in Niger

Oil was first found by Texaco and Esso in 1975 in the Agadem oilfield, in the far east of the country.[29]

Niger signed a production-sharing agreement with the China National Petroleum Corporation (CNPC) in June 2008.[30] A small oil refinery with capacity of around 20,000-barrel-per-day (3,200 m3/d) was built by CNPC near Zinder, which started production in November 2011 mostly for the domestic market. The refinery is operated by the Society of the Zinder Refinery (SORAZ). A 462 kilometres (287 mi) pipeline connects the oilfield to the refinery. Government revenue from this is over $100 million per year, about 5% of Niger's GDP, and slightly higher than from the uranium extraction industry.[29][31]

Niger made an export agreement with CNPC for crude oil from the Agadem oilfield.[31] As of 2023, China is building a new oil pipeline to export light, high-quality oil through Benin. Oil exported through this pipeline could provide up to 45% of Niger's tax revenue.[5] Operations are expected to start in 2024.[32][33]

Labor issues

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According to the U.S. Department of Labor, 47.8% of children aged 5 to 14 are working children and 4.3% of them are engaged in hazardous activities in the industrial sector, mining for trona, salt, gypsum, natron and gold.[34] The Department's 2014 List of Goods Produced by Child Labor or Forced Labor reported that Niger's mining industry still resorts to such practices in the production of these goods.

See also

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References

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  1. ^ Uranium information Centre Ltd., 2007, World uranium mining—nuclear issues briefing paper 41: Melbourne, Australia, uranium information Centre Ltd., July. (accessed November 1, 2007, at "World Uranium Mining". Archived from the original on 2008-03-03. Retrieved 2008-04-15. .)
  2. ^ a b c d U.S. Geological Survey/Omayra Bermúdez-Lugo. The Mineral industries of Mauritania and Niger. in U.S. Geological Survey Minerals Yearbook 2006. U.S. Geological Survey/U.S. Department of the Interior (July 2008) Note: this publication is in the Public Domain, and large portions of it are reproduced here verbatim.
  3. ^ International Monetary Fund, 2007b, p. 5; 2007c, p. 9
  4. ^ Cossins-Smith, Annabel (26 January 2024). "Niger suspends granting of new mining licenses". MiningTechnology. Retrieved 21 May 2024.
  5. ^ a b Elfassy, Jérémie (8 August 2023). "Former French Intelligence agent exposes dirt on uranium mining operation in Niger". i24NEWS. Retrieved 21 May 2024.
  6. ^ International Monetary Fund, 2007a, p. 9
  7. ^ a b Onstad, Eric (31 July 2023). "Niger is among the world's biggest uranium producers". Reuters. Retrieved 5 August 2023.
  8. ^ Production and exportation de l'uranium Archived 2014-07-14 at the Wayback Machine
  9. ^ [1] Archived 2014-07-14 at the Wayback Machine COMINAK, The largest underground uranium mine
  10. ^ Decalo, Samuel (1997). Historical Dictionary of the Niger (3rd ed.). Boston & Folkestone: Scarecrow Press. ISBN 0-8108-3136-8.
  11. ^ a b c Brighton Energy Discovers Additional Uranium Mineralization in Niger Archived 2012-10-02 at the Wayback Machine. Orezone Gold Corporation, Marketwire, 2011-05-16.
  12. ^ a b [2] Archived 2014-07-14 at the Wayback Machine Positioning Niger's mining & industrial sector to win
  13. ^ OpenOil : La SOMINA Archived 2021-03-18 at the Wayback Machine
  14. ^ "French nuclear giant to explore potential of uranium deposit in Niger". Africanews. 19 March 2023. Retrieved 4 August 2023.
  15. ^ Areva NC, 2006, reference document: Paris, France, areva nv, 392 p. p. 62-71
  16. ^ [3] Archived 2014-07-14 at the Wayback Machine Imouraren mine opening delayed
  17. ^ a b "Transfer of exploration licence for Niger uranium deposit". World Nuclear News. 18 July 2024. Retrieved 18 July 2024.
  18. ^ "Niger government continues to support Dasa, Global Atomic says". World Nuclear News. 14 August 2024. Retrieved 14 August 2024.
  19. ^ "Niger: le géant français de l'uranium Orano annonce avoir perdu le contrôle de sa filiale". ww.rfi.fr. 4 December 2024. Retrieved 5 December 2024.
  20. ^ [4] Archived 2014-06-28 at the Wayback Machine Beginning of construction for the Salkadamna coal and power plant complex
  21. ^ a b [5] Archived 2014-07-14 at the Wayback Machine Drivers and Impediments Regional Cooperation on the Way to Sustainable Nuclear Energy Systems
  22. ^ [6] Archived 2014-07-14 at the Wayback Machine La production du charbon au Niger - Annuaire statistique du Niger 2011
  23. ^ Background Note:Niger Archived 2019-05-24 at the Wayback Machine, United States State Department, Bureau of Public Affairs: Electronic Information and Publications Office. Bureau of African Affairs. September 2008. This article incorporates text from this U.S. government source, which is in the public domain.
  24. ^ [7] Archived 2014-07-14 at the Wayback Machine Production de produit mineraux Table 27.02
  25. ^ Discovery of Gold Deposit in Djado in Agadez Archived 2014-10-20 at the Wayback Machine.Last accessed on 9/20/2014
  26. ^ Discovery of a new Gold Deposit around Mount Ibl in Agadez Archived 2014-09-13 at the Wayback Machine.Last accessed 9/20/2014
  27. ^ a b [8] Archived 2014-07-14 at the Wayback Machine Awaiting for the cement plant of Malbaza
  28. ^ a b [9] Archived 2014-07-14 at the Wayback Machine Launching of construction work for the second cement plant in Niger in Keita, Tahoua
  29. ^ a b Schritt, Jannik; Schareika, Nikolaus (2018). "Crude Moves: Oil, Power and Politics in Niger". Africa Spectrum. 53 (2): 65–89. doi:10.1177/000203971805300204. Retrieved 21 May 2024.
  30. ^ "Niger set to become oil producer". BBC News. 3 June 2008. Retrieved 22 May 2024.
  31. ^ a b Balima, Boureima (13 April 2024). "Niger and China sign crude oil MOU worth 00 mln, says Niger state TV". Reuters. Retrieved 21 May 2024.
  32. ^ Felix, Bate (11 December 2023). "Niger aims to start oil exports from Benin pipeline in January, leader says". Reuters. Retrieved 21 May 2024.
  33. ^ Rukanga, Basillioh (9 May 2024). "Benin blocks Niger oil exports in border row". BBC News. Retrieved 21 May 2024.
  34. ^ "Niger, 2013 Findings on the Worst Forms of Child Labor". Archived from the original on 2015-03-03. Retrieved 2015-04-04.
  • U.S. geological Survey Minerals yearbook, volume iii, area reports—international— africa and the Middle east,.
  • International Monetary Fund, 2007a, Fourth review under the three-year arrangement under the poverty reduction and growth facility and request for waiver and modification of performance criteria: Washington, dC, International Monetary Fund, July, 45 p.
  • International Monetary Fund, 2007b, Letter of intent, memorandum of economic and financial policies of the government of Niger for 2007, and technical memorandum of understanding for 2007: Washington, dC, International Monetary Fund, 21 p.
  • International Monetary Fund, 2007c, Letter of intent, memorandum of economic and financial policies, and technical memorandum of understanding: Washington, dC, International Monetary Fund, May 16, 23 p.
  • Mining Journal, 2006, China in Niger: Mining Journal, July 21, p. 1.
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