Energy Standoff Between France and Niger : Somair on the Brink of Bankruptcy

Tensions are mounting between France and Niger over the strategically vital uranium sector. French company Orano, 90% owned by the French state and specialized in nuclear fuel, sounded the alarm on Thursday: its Nigerien subsidiary, Somair, is on the verge of bankruptcy.

According to statements reported by Reuters, this situation stems directly from export restrictions imposed by the military authorities in Niamey, as well as a unilateral decision to nationalize the mining company.

A Gradual Breakdown Between Orano and Niamey

The joint venture Somair, once at the heart of Franco-Nigerien mining cooperation, has seen its situation deteriorate since the military coup of July 2023. In December 2024, the new authorities in Niamey took operational control of the country’s only active uranium mine, which had until then been managed by Orano through Somair.

Last month, this takeover was formalized through an official nationalization announcement, which the French company described as a serious escalation in the ongoing dispute.

Orano views this move as part of a growing rift over the management of mineral resources and the broader strategic interests at stake.

A Strategic Asset Undermined

At full capacity, Somair accounted for up to 15% of Orano’s uranium supply. Niger, the world’s seventh-largest producer of uranium, is a key pillar in France and Europe’s nuclear raw materials portfolio.

Orano claims it warned as early as October 2024 about Somair’s worsening financial condition, emphasizing that continued operations under pressure—despite mounting losses—only served to deepen the crisis.

Now, according to the company, the absence of cooperation and the maintenance of activity in an adverse economic climate are inevitably leading to insolvency.

A Crisis With Geopolitical Implications

For Paris, the issue goes far beyond economics. At stake is a strategic imperative: securing stable and reliable access to a resource vital to France’s nuclear industry. Orano is a cornerstone of national energy independence.

The standoff between Orano and Nigerien authorities is part of a broader context of Niger’s effort to reassert economic sovereignty since the regime change. The recent rise in tensions over other raw materials such as gold and coal reflects a clear intent to redefine partnerships with former colonial powers.

So far, Niger’s Ministry of Mines has not responded to Reuters’ requests for comment. The future of Somair—and more broadly, of energy cooperation between the two countries—remains contingent on a political resolution.

Strategic Analysis

Losing control of Somair not only weakens Orano but also calls into question France’s entire strategy for securing access to critical resources in West Africa. This episode underscores the vulnerability of companies operating in politically unstable environments and highlights the need for European states to rethink their supply chains.

By reclaiming control of its resources, Niger is sending a strong message to other African nations engaged in long-standing agreements with foreign multinationals. However, nationalization without a path to financial viability could ultimately undermine the profitability of mining operations and hinder the development of the local extractive sector.

For Orano, the challenge now lies in securing new sources of supply while maintaining its foothold in a region historically critical to its growth.