Orano, the French nuclear fuels company, has issued a warning about a deteriorating financial situation at its Somair uranium plant in Niger.
The company disclosed that the plant’s board has made the decision to temporarily halt non-essential expenditures related to mining and processing activities.
This measure is aimed at addressing the financial strain facing the facility, although Orano emphasized that this does not equate to halting operations or closing the site.
Orano, which holds a majority stake of over 60% in Somair, while Niger’s state-owned Sopamin holds the remaining shares, stated that the decision was part of a broader strategy to manage the economic challenges currently facing the plant.
Niger is one of the world’s top producers of uranium, a critical fuel for nuclear energy, and Somair is one of the country’s prominent uranium extraction sites.
The company’s financial difficulties have been compounded by global market conditions, including fluctuating uranium prices and operational disruptions.
Earlier in September, Orano was forced to reschedule maintenance operations at the plant due to the financial strain, further highlighting the plant’s precarious situation.
The halting of non-essential spending will include postponing some of the planned activities at Somair, which could delay production and impact future output.
The financial challenges at Somair are expected to have broader implications for the 750 staff members employed at the plant, with the potential for reduced hours or temporary layoffs as the company seeks to cut costs.
Despite these difficulties, Orano has assured stakeholders that it remains committed to ensuring the long-term viability of Somair and its continued operations in Niger.
Orano’s move comes amid broader challenges facing the global nuclear energy sector, where rising costs and the demand for cleaner energy alternatives are pushing companies to reevaluate their operations.
The situation at Somair also comes as the company faces scrutiny over its environmental practices, as mining operations have raised concerns regarding their impact on local ecosystems and communities.
