Identifier
Created
Classification
Origin
08NIAMEY45
2008-01-14 14:24:00
CONFIDENTIAL
Embassy Niamey
Cable title:  

AREVA SIGNS URANIUM CONTRACT WITH NIGER

Tags:  EMIN ENRG EINV PREL FR NG 
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VZCZCXRO1498
PP RUEHPA
DE RUEHNM #0045 0141424
ZNY CCCCC ZZH
P 141424Z JAN 08
FM AMEMBASSY NIAMEY
TO RUEHC/SECSTATE WASHDC PRIORITY 4030
INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUEHFR/AMEMBASSY PARIS PRIORITY 0639
RHMFISS/CDR USEUCOM VAIHINGEN GE PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0025
C O N F I D E N T I A L NIAMEY 000045 

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/14/2018
TAGS: EMIN ENRG EINV PREL FR NG
SUBJECT: AREVA SIGNS URANIUM CONTRACT WITH NIGER

REF: (A) 07 NIAMEY 983 (NOTAL) (B) 07 NIAMEY 641
(NOTAL)

Classified By: Donald W. Koran, DCM, reasons 1.4 (b/d)

C O N F I D E N T I A L NIAMEY 000045

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/14/2018
TAGS: EMIN ENRG EINV PREL FR NG
SUBJECT: AREVA SIGNS URANIUM CONTRACT WITH NIGER

REF: (A) 07 NIAMEY 983 (NOTAL) (B) 07 NIAMEY 641
(NOTAL)

Classified By: Donald W. Koran, DCM, reasons 1.4 (b/d)


1. (U) The government of Niger and the French energy company
Areva have concluded a contract concerning Areva's mining and
purchase of Nigerien uranium, according to press reports and
an Areva press release. The contract reportedly calls for
the development of the Imouraren uranium mine at a total
investment of one millions euros (about $1.5 million). The
mine will reportedly produce about 5,000 MT/year of uranium.
The contract also calls for a 50 percent increase in the
price paid for uranium for the 2002008-2009 contract period,
although the actual price has not been announced. The
contract was signed in Niamey on January 13 by Nigerien
president Tandja and Areva president Anne Lauvergeon. We are
seeking to verify/confirm the details, some of which may
still be under discussion.


2. (C) In addition to the Imouraren site, Areva affiliates
Somair and Cominak currently produce a total of about 3,750
MT/year of uranium from existing mines. GON officials had
previously reported that they expected that figure to
increase to a total of 4,160 MT/year by 2011. The Chinese
National Uranium Corporation (CNUC) is also expected to begin
producing uranium, with a total output of 700 MT/year by

2011. (Ref b provides background on the Nigerien uranium
industry.)


3. (C) Niger's uranium is located in the north, which has
been the site of a rebellion by the predominately Tuareg
rebel group, the Mouvement des Nigeriens pour la Justice
(MNJ),since last February. The MNJ had demanded a greater
share of uranium revenues and jobs. It has also complained
about the environmental consequences of uranium mining. The
MNJ had previously attacked the Imouraren site and briefly
held a CNUC executive hostage near Ingall.


4. (C) The new contract follows a year of tense relations
between Niger and Areva, due both to Nigerien suspicions that
Areva was paying protection money to the MNJ, and to that
fact that Areva was paying substantially below the world spot
price for uranium under a three year contract that expired at
the end of 2007. The GON expelled the head of Areva's
Nigerien operations last July, which prompted a flurry of
diplomatic activity leading to an increase the price paid for
Nigerien uranium for the rest of the year (ref a).


5. (C) Comment: Notwithstanding the widespread reports that
Niger was diversifying its uranium sector, including through
the granting concessions to other (mainly Chinese and
Canadian) companies and the signing a contract to sell
uranium to a U.S. company, the Areva deal confirms Areva's
predominate role in the Nigerien uranium sector for years to
come.
ALLEN