Atomic Eagle claws back Niger uranium project
Company has regained control of its Madaouela project two years after the government revoked the mining permit of predecessor company GoviEx Uranium.
Atomic Eagle (ASX: AEU) has reclaimed its Madaouela uranium project in Niger, two years after the government stripped the mining permit of its predecessor, GoviEx Uranium. This dispute led to an international arbitration process. The Mining Convention Atomic Eagle negotiated with Niger's military government includes a revised exploration permit for Madaouela, granting the company a 60% stake in the project.
The government holds 40%, according to a report on Monday. The government also issued a permit to state miner Tsumco for the In Azaoua area, where French miner Orano previously held a 63% interest in the Somaïr uranium mine before Niger nationalized it last year. Experts see this as a precedent that could help lenders underwrite country risk on new builds, while the Somaïr award demonstrates the government's desire for uranium production to continue.
The developments signal a potential shift in Niger's approach to resource nationalism, a trend seen in other Sahel region governments recently feuding with Western miners over renegotiating mining rules. With this setback, Global Atomic, a Canadian uranium miner, views the developments positively. Unlike some of its foreign peers, Global Atomic has avoided disputes with the government, thus avoiding the risk associated with Niger's jurisdiction.
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