Uranium in niger

Niger

Uranium in nigerA landlocked country, the Republic of Niger is the largest country in West Africa, with an area of 1,267,000km2 and a capital city Niamey. Niger is bordered on the north by Libya, on the east by Chad, on the south by Nigeria, on the southwest by Benin and Burkina Faso, on the west by Mali, and on the northwest by Algeria. Niger is four-fifths desert, and most of the northeast is uninhabitable. The population of Niger in July 2007 was estimated by the United Nations at 12,894,865. French is the national and official language. Uranium mining has been the mainstay of the Niger economy with French nuclear conglomerate Areva having a virtual monopoly on all exploration and production until recent years when the government undertook an active diversification program of its mining sector, solidifying the new mining law and extending rights to other companies.

Niger is one of the world’s leading uranium producers with greater than 3,000 tonnes of U3O8 produced annually over the past 30 years from the Cominak and Somair mines operated by Areva. Niger currently has 5% of world’s known recoverable uranium (vs 1% for China or India for example). In the next few years Niger’s production will be expanded to >10,000t once again making it one of the top producers in the world while boosting the economy and increasing infrastructure in the region. Tim Mersoi basin contains all of the known uranium deposits in Niger and is the host to Imouraren, the second largest known uranium deposit in the world slated to start production in 2012 at 5,000 tons of uranium per annum.

DepositDescriptionReserves (tons)Resources (tons)Grade
Arlit depositIn production, ~1700 per annum. Operated by Areva. Owned 63.4% Areva, 36.6% Niger23,17126,5320.08-0.29%
Arlit Concession100% Areva20,4030.16%
AkoutaIn production, ~1500 per annum. 34% Areva, 31% Niger, 25% OURD Japan, 10% ENUSA S.A. Spain24,670258620.27-0.39%
ImourarenProduction 2012, ~5,000 tons per annum. 66.65% Areva, 33.35% Niger, (deal in progress) 10% Korea Electric Power Corp.183,52018,7390.046-0.11%
AzelikProduction 2011, ~800 tons per annum. 37.2% China Nuclear International Uranium Co.,33% Niger, 24.8% ZXJOY Invest, 5% Korea Resources Corporation12,7640.21-0.24%
In GallActive exploration in progress. Niger Uranium Ltd.1,9910.0141%
MadaouelaActive exploration. GoviExNiger Holdings with investment by Cameco.>6,0000.2%
Adrar EmolesActive exploration. Global Atomic Fuels Corporation.19,4230.07%
Tin NegouranActive exploration. Global Atomic Fuels Corporation.3,4650.014-0.05%
TakardeitNGM Resources Ltd (with investment by Paladin)4,2310.018%

Other uranium exploration companies actively working in the basin are: Homeland Uranium, Artemis Resources, Trendfield Mining, Niger Mining Services, Indo Energy, Mohan Energy Corporation, Sahel Mining, and Afri Resouces.

Mineral Tenure

In Niger, all mineral rights are vested in the State. The Code Minier de la Republique Du Niger (Mining Code) of 2006 regulates the mining industry in the country. The Act has been designed to facilitate and encourage the private sector to evaluate and develop mineral resources.

Several types of mining and prospecting licenses exist, as outlined briefly below.

Exploration License

An Exploration license is valid for three years, renewable for two further three-year periods subject to certain land holding reduction (50% after 3 years) criteria and field works. The area held under a permit cannot exceed 500km2 in a rectangular block. An exploration license confers to the holder the right to dispose of any minerals obtained during exploration and test work, and also confers the right to a mining license if a viable reserve is discovered. Applications must stipulate the minerals sought (additional minerals can be included later), and a work schedule and budget for the first 3 years.

Mining License

A Mining license will be granted in the case of successful exploration, subject to the right of the Government to participate in the project. A “small mine” permit is valid for five years, renewable three times for five-year periods, while a “large mine” permit lasts for 20 years initially, renewable two times per period of 10 years. Further extensions are possible if commercial reserves remain. Companies applying for a Mining license must conform to Nigerien Company law. The Government requires an initial 10% share in the mining project, free of all costs, which can later be increased to a maximum of 40% through share purchases.

LTD BP: 471 Niamey-Niger / Phone: +22794659030 / Fax: +22720723641 / E-mail: info@semmouslionmining.com