Niger wants a fair uranium deal from French company AREVA

Niger says seeks better uranium terms from French Areva  au news 6 Dec 13Paris (AFP) – Niger’s President Mahamadou Issoufou said in Paris on Friday that his country wanted to renew its uranium mining agreement with French nuclear giant Areva, but on more equitable terms….. Areva’s contract to extract uranium in the west African country expires on December 31, after more than four decades of mining at two sites on the southern edge of the Sahara, with a third under development………http://au.news.yahoo.com/thewest/business/world/a/20197961/niger-says-seeks-better-uranium-terms-from-french-areva/

Huge protest in Niger, against uranium miner AREVA

5,000 march against French uranium miner in Niger http://www.mining.com/5000-march-against-french-uranium-miner-in-niger-17954/Frik Els | October 12, 2013 Thousand of protestors marched against French uranium miner Areva (EPA:AREVA) in the remote town of Arlit in Niger on Saturday.

Areva has been operating in Niger for more than 50 years with two sites, Somair and Cominak, currently producing, and its long-term deal with the government of Niger is up for renegotiation at the end of 2013.

The roughly 5,000 protesters in Arlit were out in support of a Niger government audit to determine how to better distribute revenues from the two mines Reuters reports:

“We’re showing Areva that we are fed up and we’re demonstrating our support for the government in the contract renewal negotiations,” Azaoua Mamane, an Arlit civil society spokesman, said in an interview with a private radio station.

“We don’t have enough drinking water while the company pumps 20 million cubic meters of water each year for free. The government must negotiate a win-win partnership,” Mamane said.

The two mines together produce 4,500 tonnes of uranium for export to France and another project at Imouraren, which will be the largest uranium mine in Africa, is set to start operations in 2015.The Somair mine was back to full production in August, after a suicide attack in May killed one worker and injured 14 partially shutting down mining.

Prices for uranium are  languishing at 8-year lows of $34 a pound and have not recovered since the Fukushima disaster in Japan in 2011

Niger wants a fair deal from AREVA on uranium mining

Niger audits Areva uranium mines, seeking better deal By Daniel Flynn and Abdoulaye Massalatchi NIAMEY | Fri Sep 20, 2013  (Reuters) – Niger has ordered an audit of French nuclear group Areva’s (AREVA.PA) uranium mines in the West African country as it presses for a better deal in talks over a new long-term contract, Mining Minister Omar Hamidou Tchiana told Reuters.

Areva’s two mines in Niger – Somair and Cominak – produce the fuel for roughly one-third of France’s nuclear power, providing some of the cheapest electricity in the West.

Niger, a former French colony and one of the world’s poorest countries, has long complained it does not reap enough benefits from these resources……..

Extractive industries watchdogs, including the local branch of Publish What You Pay, have accused Areva of a lack of transparency in its revenues and costs in Niger…….

Previous Niger governments have struggled to substantially increase the state’s take from uranium and details of the 2003 mining contract have been kept confidential. The IMF estimates Niger’s gross domestic product at around 5.5 billion euros, only just over half of Areva’s revenues of 9.3 billion in 2012……..http://www.reuters.com/article/2013/09/20/us-niger-areva-idUSBRE98J0MY20130920

Nuclear giant AREVA’s controlling presence in Niger

Areva, world’s 2nd uranium company heavily present in Niger, Expatica.comm 23 May 13  French nuclear group Areva, the world’s second-largest uranium producer whose mine in northern Niger was hit by a car bomb on Thursday, extracts more than a third of its mineral in the impoverished west African country.

Areva has been present in Niger for more than 40 years, operating two big mines near the northern town of Arlit through two affiliated companies — Somair and Cominak — which represent 37 percent of its total uranium production.

Somair, which is 64-percent owned by Areva and 36 percent by the state of Niger, produced 3,065 tonnes for the group in 2012.

Cominak, which is owned 34 percent by Areva, 31 percent by Niger, 25 percent by Japan’s Ourd and 10 percent by Spain’s Enusa, produced 512 tonnes.

The group’s total production in Niger, at nearly 3,600 tonnes, trails output in Kazakhstan, where it mined 3,661 tonnes.

Output is set to increase in two years’ time when Areva opens a third mine to tap the vast uranium deposit at Imouraren, 80 kilometres (50 miles) south of Arlit. The mine’s opening, originally planned for 2012, has been put off on several occasions, notably following unrest in the region.

Areva said Thursday’s blast killed one and wounded 14 at its Somair subsidiary. The attack has been claimed by the MUJAO Islamist group as revenge for Niger’s involvement in a French-led military offensive in neighbouring Mali.

Areva’s operations in Niger have been targeted before by Islamist extremists. In September 2010 Areva evacuated a large part of its expatriate workforce from Niger following the abduction by Al-Qaeda in the Islamic Maghreb (AQIM) of seven employees of the group and its sub-contractor Sogea-Satom, a subsidiary of the BTP Vinci, which works in the uranium mine in Arlit.

Three hostages — a French woman, a Togolese and a Madagascan — were freed in February 2011, but four employees — one from Areva and three from Vinci — are still being held.

The company’s heavy presence in Niger has also given rise to tensions with the local authorities.

The Niger government has on many occasions called the partnership with Areva unbalanced, demanding more benefits for the local population more….. http://www.expatica.com/fr/news/french-news/areva-world-s-2nd-uranium-company-heavily-present-in-niger_265534.html

 

It’s getting harder for foreign uranium companies to rip off Africans

it’s not acceptable” that Niger’s most
valuable export only contributes about 5 percent to the nation’s
annual budget.

Increased revenue for Niger may come in the form of more mining
taxes, royalties or even a stake in AREVA; any of those options would
lower returns for investors and discourage future investment

Investment analysts are advising those with resource investments in
Mali to get out while they can

Mali, Niger Unrest Highlights Need for Uranium Asset Diversification
February 14, 2013,   By Melissa Pistilli  Uranium Investing News
France’s military intervention in Mali, its former West African
colony, highlights industrialized nations’ supreme need to secure
access to economically strategic assets — in France’s case, uranium.
That theme will increasingly be seen playing out on the world stage
over the coming years.

Mali’s Kidal region, which is controlled by Islamist militants,
borders the northwestern desert region of Niger, where France’s
nuclear power giant AREVA (EPA:AREVA) has been mining uranium for more
than half a century.In light of current hostilities at its Arlit mine,
which in 2010 was the site of a kidnapping that may have been backed
by al-Qaeda, AREVA has said it’s strengthening its security measures
at both its Arlit and Imouraren mining operations. The BBC recently
reported that the security detail includes French special forces.

France’s deployment of special forces to protect AREVA’s uranium
assets reveals that the nation’s priorities include ensuring access to
a steady and reliable supply of uranium. France relies on nuclear
power to generate about 75 percent of its electricity, and according
to a parliamentary report, the western nation acquires about 18
percent of its nuclear fuel from Niger, the world’s fifth-largest
uranium producer.

Mali isn’t the only problem neighbor bordering Niger. Islamist
militants recently launched a bloody attack on a BP (NYSE:BP,LSE:BP)
gas plant in Algeria, which borders Niger on the northwest, and to the
northeast of the country is Libya, where Muammar Gaddafi’s death has
left opposing groups vying for power.

Diversifying via joint ventures in lower-risk jurisdictions

Complicating problems for AREVA is the fact that Niger’s president,
Mahamadou Issoufou, recentlysaid his government wants to renegotiate
the terms of its uranium mining agreement with the France-based
company. He stated that “it’s not acceptable” that Niger’s most
valuable export only contributes about 5 percent to the nation’s
annual budget. The country’s government is reportedly asking for at
least 20 percent of revenue from the industry…..

Increased revenue for Niger may come in the form of more mining
taxes, royalties or even a stake in AREVA; any of those options would
lower returns for investors and discourage future investment,
explained Berry.

Investment analysts are advising those with resource investments in
Mali to get out while they can,according to a Canadian Press report.
Certainly, investments in politically unstable mining jurisdictions
carry huge risks that often are not worth the profit potential…….

Major companies like AREVA and Cameco (NYSE:CCJ,TSX:CCO) understand
how important it is to mitigate such risks through geographically
diversifying their assets. These companies are looking to replace
mined pounds of uranium with deposits in stable, mining-friendly
jurisdictions…..

France’s military protect AREVA’s uranium mines in Niger

France orders special forces to protect Niger uranium: source PARIS Jan 24, 2013   (Reuters)– France has ordered special forces to protect uranium sites run by state-owned Areva in Niger as the threat of attacks on its interests rises after its intervention against rebels in Mali, a military source said on Thursday   Reporting by John Irish, Geert de Clercq, Muriel Boselli, Michel Rose in Paris and Abdoulaye Massalatchi in Niamey; …….

The military source confirmed a report in weekly magazine Le Point that special forces and equipment would be sent to Areva’s uranium production sites in Imouraren and Arlit very quickly, but declined to go into further details.

How Cameco and Areva try to buy silence from Saskatchewan community on uranium mining

The agreement would prohibit Pinehouse from criticizing the companies now or in the future, a measure that amounts to an indefinite “gag order”

• Pinehouse promises to “fully support” Cameco and Areva’s current, proposed and future projects in public, to investors, to regulators and with other groups. Pine-house leaders must make reasonable efforts to ensure community members “do not say or do anything that interferes with or delays” the companies’ operations. 
• Pinehouse agrees to not make any future financial requests or claims against the companies.

Uranium firms offer deal to Sask. community Agreement sparks opposition By Jason Warick, The StarPhoenix November 27, 2012 An offer by uranium giants Cameco Corp. and Areva could soon deliver jobs, cash payments and other benefits to the northern community of Pinehouse, but some residents worry it’s a thinly veiled attempt to buy their silence.

No sign of recovery in uranium prices

End of last month, the price had fallen to US$49.25 and for most of September, it hovered at the US$48 mark. This is almost 60% below the entry level target as calculated by Bannerman. The impact on the development of new mines, is obvious.

 I believe the commodities boom is over, or at least on hold for another five years. In the meantime, no new mines.

Our Anticipated Uranium Projects Will Not Go Ahead, Except One [analysis] Equities.com Daniel Steinmann All Africa Global Media 22 Sept12, Bannerman Resources, the Australian company driving one of four new uranium projects in Namibia, recently said at a mining conference, the price for uranium U308 needs to be between US$75 and US$90 per pound (0.454kg) to drive any new investment in greenfields uranium mines.

Hidden in this seemingly neutral observation and analysis, are many serious consequences for the further development of the uranium sector in Namibia. Following a simple line of deductive logic, the syllogistic conclusion shows that the development of new uranium mines will only be considered once the price exceeds US$75 per pound.

AREVA abandoning Trekkopje uranium mine project

Areva suspends Trekkopje uranium mine project, Paul Langley’s Nuclear history Blog, 24 Aug 12 Areva has decided to suspend the Trekkopje uranium mine project. …. Rumours already started in October Areva planned to abandon the Trekkopje uranium mine project as part of a massive restructuring program that is to be set up in reaction to a drop in demand caused by the German nuclear phase-out and the Fukushima disaster….

 Solar Project Aims to Becomes Largest in West Africa By Steve Leone, Associate Editor, RenewableEnergyWorld.com October 25, 2011   DALLAS, Texas — An American-based investment group has secured a power purchase agreement with the Namibian government to build a 500-megawatt photovoltaic power plant near the capital of Windhoek.

If built, the plant would represent the largest solar installation in West Africa, and could eventually include wind generation and grow up to 1 gigawatt. The group, led by Washington-based project developer SSI Energy Solutions (SSIES), is the parent company of Africa Energy Corp., which was set up for the Namibia project. Partners in the project include former SunEdison CEO Jigar Shah, Tom Amis and Nik Patesh of clean-energy law firm Cooley LLP, Eric Henderson of the Beacon Group and Adam Stern and Gary Kleiman of The Gemstone Group……. The project is far bigger than any solar project currently online in the southern hemisphere. South Africa, which borders Namibia, has garned the most interest in the region for large-scale developments…. http://nuclearhistory.wordpress.com/2012/08/23/areva-suspends-trekkopje-uranium-mine-project/

AREVA’s financial problems, as nuclear industry declines

Areva, which has been designed as a one-stop nuclear shop, has been affected by massive impairments on its uranium assets and a slowdown of the nuclear industry following Japan’s Fukushima disaster

Areva Accelerates Disposals By GERALDINE AMIEL, WSJ, March 2, 2012, PARIS—French state-controlled nuclear energy company Areva SA announced two asset disposals as part of a plan to boost competitiveness and better position it to face a slowing civil atomic industry, one year after Japan’s Fukushima nuclear catastrophe.

Friday, the group said it has signed an agreement to sell its 27.94% stake in the Canadian Millennium uranium mining project to its partner Cameco Corp. for 150 million Canadian dollars ($152 million), or a little more than €112 million. Late Thursday, the group said it agreed to sell its 26% stake in nickel producer Eramet SA to state-owned strategic investment fund FSI, for €776 million.

The disposals are part of a plan to sell as much as €1.2 billion worth
of assets in 2012-2013. Areva’s Chief Financial officer Pierre Aubouin
said in a conference call Friday that he was confident that most of
the disposals would be done by this year……
Areva, which has been designed as a one-stop nuclear shop, has been
affected by massive impairments on its uranium assets and a slowdown
of the nuclear industry following Japan’s Fukushima disaster. Areva is
opening financing of its Imouraren uranium mine to French
state-controlled power behemoth Electricité de France SA.

Potential contracts for new reactors are been delayed, notably in
India but also in China, where the group seeks to build
third-generation safety-enhanced Evolutionary Pressurized Reactor, or
EPR, Areva’s Chief Executive Luc Oursel said Friday.

Areva hopes to finalize a deal this year to build two EPRs in India,
after more than two years of talks, and is still waiting for Chinese
authorities to lift their ban on new reactors, Mr. Oursel said.

Late Thursday, Areva said it made a net loss of €2.42 billion in 2011
after a €883 million net profit a year earlier,…
http://online.wsj.com/article/SB10001424052970203753704577257183309548816.html