“Currently, in accordance with the instructions of the head of state, the possibilities of Kazatomprom’s participation in uranium conversion and enrichment technologies are being considered. The Orano company is one of the world leaders, possessing all the technologies, and the agreement, which was signed at the Kazatomprom level, also involves studying the possibility of Kazatomprom entering and obtaining these technologies,” Mr. Satkaliev said at the briefing.
The Minister of Energy emphasized that Kazakhstan needs to expand its presence in the full cycle of uranium processing.
“We have unique competencies in mining and primary processing; we are number one in the world in uranium supply and uranium export. We have operating research reactors. That is, the missing link in this cycle is the conversion and enrichment of uranium, and now the Kazatomprom company, in accordance with the instructions of the head of state, is studying the possibility of covering this cycle,” added the head of the Ministry of Energy.
He did not specify where the final products will be sent, noting that “it depends on world market conditions.”
Earlier it was reported that the management of the Samruk-Kazyna state fund discussed with the chief operating officer of the Orano group, Nicolas Maes, the expansion of cooperation on the Kazakh-French uranium enterprise Katko LLP. The French side voiced a proposal to expand areas of cooperation, including the implementation of joint strategic projects outside of Kazakhstan.
Kazakh-French joint venture Katko LLP was founded in 1996, its participants are Kazatomprom and Orano Mining – the Kazakh division of the French Orano Mining, which, in turn, is part of Orano SA. Katko mines uranium using the in-situ leaching method in the northern part of the N1 (South) section and in the N2 (Tortkuduk) section of the Moyynkum deposit in the Turkestan region of Kazakhstan.
In December 2022, Kazatomprom and Orano Mining signed a memorandum of cooperation in the nuclear industry, in particular, on the further development of the Katko joint venture as part of the official visit of the President of Kazakhstan Kassym-Jomart Tokayev to France.
Kazatomprom, controlled by the state, is engaged in the mining of uranium, processing of rare metals, production and marketing of beryllium and tantalum products. Kazatomprom estimates its share in the global natural uranium mining market at 22% by the end of 2022. Kazakhstan annually supplies more than 45% of the world nuclear energy needs for uranium products.
It is planned that the visit of French President Emmanuel Macron to Central Asia will bring concrete results in the mutual relations of this region with Europe. Macron has already arrived in Kazakhstan today. He is expected to leave for Uzbekistan tomorrow. In both cases, the main topic of discussion will be energy, especially nuclear energy, which is directly related to uranium mining, which is one of the main industries of these two Central Asian countries.
The Elysee Palace has identified two main goals of the French leader’s visit to these countries. These goals include increasing the diversification of strategic and economic relations and strengthening the participation of these countries by signing agreements in areas such as energy, supply of mineral resources, transport and aviation. As reported, President Macron will be accompanied by ministers of industry and foreign trade, as well as about 15 heads of large corporations on his visit to Kazakhstan.
France is particularly interested in participating in the construction of the first nuclear power plant in Kazakhstan (the question of the construction of the plant will be put to a referendum by the end of the year).
Regrettably, it is disheartening to acknowledge that Russia still maintains considerable control over a substantial portion of the global uranium market. This vexing situation poses challenges when it comes to imposing sanctions, given the numerous contractual agreements that various companies have with Russian entities for uranium supply. Nevertheless, we remain resolute in our efforts to displace them from this market and bolster uranium production within Ukraine,” emphasized the Minister.
In light of this collaborative endeavor, the initial batch of Ukrainian uranium, diligently extracted from the esteemed VostGOK facility, has been expertly loaded and dispatched to Canada.
Furthermore, Ukraine has been granted a credit guarantee by the esteemed UK government, amounting to a noteworthy £192 million, as part of a fruitful partnership with Urenco. This credit guarantee has been extended to support Energoatom in availing uranium enrichment services.
The Minister also shared the uplifting news that merely a few days ago, the maiden shipment of nuclear fuel, thoughtfully developed by the esteemed American company Westinghouse Electric Sweden AB in close collaboration with accomplished Ukrainian specialists from the esteemed National Atomic Energy Company Energoatom, was seamlessly loaded into the VVER-440 reactor at the illustrious Rivne Nuclear Power Plant.
During an interview at the esteemed 2023 World Nuclear Symposium, Dastan Kosherbayev, the Chief Commercial Officer of “NAC Kazatomprom,” eloquently delved into the company’s operational performance, elucidating its anticipated expectations and logistics routes. Representatives hailing from Kazatomprom also provided updated information regarding the current status of uranium deliveries via the Trans-Caspian International Transport Route (TITR).
It was duly noted that as of the conclusion of the first half of 2023, an impressive 58% of all uranium deliveries from Kazakhstan to Western countries were successfully transported through the TITR. Furthermore, it is projected that by the culmination of 2023, the share of Kazatomprom’s uranium deliveries to Western countries via the TITR will ascend to a staggering 71%.
Ukraine has shipped its first batch of uranium to Canada under an agreement signed between Energoatom and Cameco. The agreement presupposes the supply of all uranium extracted by Vostochniy Mining and Processing Works to Canada and its further conversion into natural uranium hexafluoride (UF6). Such a process is necessary to prepare uranium for its further…
Could Europe Face an Energy Crisis if Niger Halts Uranium Mining for France?
Amidst the aftermath of the coup in Niger, questions loom over the future of uranium supply, a cornerstone of the nation’s economy. Niger, nestled in the Sahel region, possesses extensive underground uranium reserves, making it a vital player in the global uranium market.
France, a former colonial power in Niger, faces a precarious situation. A significant portion, approximately two-thirds, of France’s electricity generation relies on nuclear power plants powered by uranium extracted from Niger. Furthermore, France exports electricity to European nations that lack their own nuclear power facilities.
With coup plotters holding sway in Niger for just over a month, concerns have surged regarding the uninterrupted flow of uranium to global markets. The implications of any disruption in this supply chain are profound, given France’s dependence on nuclear energy and its role as an electricity exporter to Europe.
To shed light on this critical issue, DW has sought insights from experts both in Niger and Europe, delving into the intricate web of the energy supply chain. As Niger’s uranium supply faces uncertainty in the wake of recent events, the consequences for Europe’s energy stability remain a topic of intense scrutiny.
Inequitable Relations Emerge Amidst Niger’s Political Shift
Following the coup in Niger on July 26, the diplomatic and economic ties between the two nations have entered a precarious phase.
The new military junta, led by General Abdourahamane Tiani, has displayed growing disenchantment with France. Upon assuming power, the junta swiftly enacted measures to disrupt the status quo, including suspending uranium exports and issuing a 48-hour ultimatum for the departure of the French envoy. Notably, Ambassador Sylvain Itte has defied expulsion orders and remains stationed in Niamey. Despite the junta’s actions, President Emmanuel Macron’s government is reluctant to relinquish its sway and access to essential raw materials. Nevertheless, patience in Niger for such imbalances is wearing thin.
Mahaman Laouan Gaya, a former Nigerien energy minister and former secretary-general of the Organization of African Petroleum Producers (APPO) until 2020, voiced the prevailing sentiment in Niger, emphasizing the glaring disparities in the partnership. Gaya pointed out that in 2010, Niger exported uranium valued at €3.5 billion ($3.8 billion) to France but received a mere €459 million in return.
Gaya further noted that if Niger were to decide against exporting uranium to France, the repercussions would be profound for France but hold limited impact on the Nigerien economy. The stark reality is that approximately 90% of Niger’s population lacks access to electricity, and exploitative pricing mechanisms have resulted in inadequate income from its exports. The growing sense of inequality in this partnership is a matter of concern as the dynamics between the two nations continue to evolve.
Is Uranium Production at a Standstill?
For decades, the French nuclear giant Orano (formerly known as Areva) has been engaged in uranium mining operations within Niger. The primary purpose of this material is to manufacture fuel rods intended for use in France’s 56 nuclear power plants.
Presently, there is uncertainty surrounding whether the junta’s imposed moratorium on uranium exports is being effectively enforced.
A spokesperson for the company recently informed the AFP news agency that the ongoing crisis has not had any immediate impact on Orano’s capacity to supply uranium.
In contrast, Hama Amadou, Niger’s former prime minister and a prominent opposition figure, shared a different perspective in an interview with Voxafrica. According to him, the mining company continues to produce uranate, the foundational material for uranium.
Amadou expressed skepticism regarding the notion that the new authorities had annulled the uranium mining contracts between France and Niger. He raised questions about why the French state appears concerned about its interests in Niger, given these circumstances.
As this situation unfolds, the status of uranium production remains uncertain, and differing viewpoints persist regarding its continuity.
French Control Over Niger’s Mining Operations Remains Strong
The largest uranium mine in the Sahara, situated on the outskirts of Arlit, is under the firm control of Somair. This mining company is predominantly owned by France’s state-owned Orano group, holding a 63% stake, while the remaining 37% is in the hands of Niger’s state-owned company, Sopamin.
In 2021, the Somair mine played a pivotal role, accounting for over 90% of Niger’s uranium exports. Furthermore, France and the previous government led by Mohamed Bazoum had reached an agreement to recommence operations at another mine.
Notably, in May, Orano solidified its presence in Niger by signing new contracts with the Nigerien government. These agreements extended French uranium mining activities in the country until the year 2040.
Nigerien journalist Seidick Abba has emphasized that the recent coup has not altered the existing commercial arrangements between these corporate entities. He clarified that uranium would continue to be transported from the mine near Arlit to France via Cotonou, emphasizing that the contractual terms do not grant Niger the authority to halt these shipments.
Despite the political upheaval, the junta lacks the means to obstruct these deliveries, underscoring the enduring strength of these arrangements.
Europe’s Alternative Uranium Suppliers
While France has been a significant recipient of uranium from Niger, accounting for roughly one-fifth of its supply, it is essential to note that alternative sources exist. Data from the Euratom Supply Agency reveals that Central Asian nations such as Kazakhstan and Uzbekistan have also played a substantial role in supplying uranium to France.
These alternative uranium suppliers provide France with diversification options, reducing its dependency on a single source.
As recently as 2022, Alex Vines from the London-based think tank Chatham House noted that Niger held the position of France’s third-largest supplier of uranium. However, Vines asserted that the level of dependence on Niger was somewhat overstated, as France engages in uranium trade with other nations like Kazakhstan, Australia, and Namibia. This diverse network of suppliers allows France to readily diversify its uranium sources, reducing reliance on any single provider.
According to the World Nuclear Association, Niger contributed only 5% of the uranium sold on the global market in 2022. Some analysts have raised concerns about potential price hikes and their far-reaching consequences if Niger’s uranium were to become scarcer on the international market.
In 2022, during a period when many power plants faced cooling water shortages, the dominance of French nuclear power within Europe became evident, resulting in increased energy prices.
To mitigate concerns regarding a possible energy crisis stemming from the situation in Niger, European Commission spokesman Adalbert Jahnz offered reassurance. Jahnz explained that the European Union (EU) maintains an adequate supply of natural uranium stocks, ensuring a buffer against short-term supply disruptions. He confirmed the presence of ample deposits on the global market, assuring that the EU’s medium and long-term uranium needs could be met without issue.
BRUSSELS, Aug 1 (Reuters) – EU nuclear agency Euratom said on Tuesday it saw no immediate risk to nuclear power production in Europe should Niger cut its deliveries of uranium.
Euratom told Reuters that Niger – a West African country where a junta seized power last week – was the second-largest supplier of natural uranium to the European Union last year.
It said utilities in the bloc had enough uranium inventories to fuel its nuclear power reactors for three years.
“If imports from Niger are being cut, there are no immediate risks to the security of nuclear power production in the short term,” said Euratom.
France – a leading nuclear power producer in Europe and Niger’s former colonial power – said on Tuesday it would evacuate French and European citizens after the overthrow of the country’s democratically elected government.
The EU’s executive European Commission also said the 27-nation bloc had “sufficient inventories of uranium to mitigate any short-term supply risks”.
“Medium and long-term, there are enough deposits on the world market” to cover EU needs, a spokesman for the executive said.
Euratom said that in 2022 Niger delivered 2,975 tU of natural uranium, or 25,4% of the EU’s supplies. Kazakhstan was the biggest supplier for the bloc, with Canada third.
The agency said natural uranium equivalent in inventories owned by EU utilities last year totalled 35,710 tU, compared to average annual consumption of around 12,500 tU.
It said the bloc could diversify imports in up to three years, including from currently idled production sites in Canada, Australia and Namibia, as well as from new deposits.
