Niger has suspended the export of uranium and gold to France, its former colonial ruler and leading trading partner. France is the world’s largest consumer of nuclear energy, with 56 nuclear reactors that provide about 75% of its electricity. Most of this uranium was exported to France, which uses it to power its civil nuclear industry. The suspension could also affect Niger’s relations with other countries that import its uranium, such as China, India, Japan, and the United States. The decision, announced by General Abdourahamane Tchiani, who led a military coup in February 2023, is seen as a way of asserting Niger’s sovereignty and challenging France’s influence and interests in the region. However, the decision could also have serious economic consequences for Niger, which depends heavily on uranium and gold exports for its revenue and development.
Uranium and gold are two of Niger’s most significant exports, accounting for 40% and 20% of its total exports respectively. According to the International Atomic Energy Agency, Niger earned about $300 million from uranium exports in 2019, which represented about 5% of its government revenue. As of 2021, Niger still produced 311,110 tonnes of uranium, which accounted for over 5% of world uranium output. Most of this uranium was exported to France.
Similarly, gold is Niger’s second-largest export after uranium, and it has attracted foreign mining companies such as Canada’s IAMGOLD and China’s CNPC. According to the World Bank, Niger produced about 6.5 tonnes of gold in 2019, which was worth about $260 million. An export restriction means Niger could lose a significant source of income and foreign exchange. The suspension could discourage further exploration and development of the country’s gold. In 2021, Guinea experienced an immediate decline in its bauxite exports after Colonel Mamady Doumbouya overthrew President Alpha Conde. Prior to the coup, the country produced 20% of the global bauxite market.
The suspension of uranium and gold exports to France could also have a knock-on effect on other parts of Niger’s economy. Niger is already one of the poorest countries in the world, with a per capita income of $550 and a human development index ranking of 189 out of 189 countries. This means that Niger will have less income to spend on healthcare, education, infrastructure, and social services. This could make the living conditions of the people worse, and increase poverty and inequality. The suspension could also affect other sectors of Niger’s economy that depend on these minerals. For example, Uranium industrial mines employ about 4,000 people, while Artisanal and Small-scale gold mining involves more than 500,000. If the mining sector slows down or stops, it would have a ripple effect, leading to a decrease in economic growth, an increase in poverty, and social unrest.
The suspension of uranium and gold exports to France could have a negative impact on other sectors of Niger’s economy. Niger is already one of the poorest countries in the world, with a per capita income of $550 and a human development index ranking of 189 out of 189 countries. This means Niger will have less income to spend on healthcare, education, infrastructure, and social services. As a result, living conditions may worsen, leading to an increase in poverty and inequality. Additionally, the mining sector, which employs approximately 1,700 people directly and many more indirectly, may experience a slowdown or complete halt, causing a ripple effect that could decrease economic growth, increase poverty, and lead to social unrest.
Despite the potential negative consequences, Niger’s decision to suspend uranium and gold exports to France presents an opportunity to negotiate a more equitable and sustainable deal for its natural resources. Niger has long complained that it does not receive enough benefits from its uranium and gold exports and that it bears the burden of environmental and social costs. For example, Niger has accused France of paying low prices for its uranium, estimated to be only one-third of the market price.
Niger has also claimed that France has not invested enough in the development of Niger’s mining sector and that it has not shared enough technology and expertise with Niger. Furthermore, Niger has raised concerns about the health and safety of its workers and communities, who are exposed to radiation and pollution from mining activities. This presents an opportunity for Niger to use its position as a strategic supplier of uranium and gold to demand better prices, royalties, taxes, and environmental standards, leading to more equitable and responsible management of its natural resources. In addition, Niger could explore new export markets and seek out partners who can offer more favourable terms and conditions. It is unclear how long the suspension will last or how France will respond to this challenge. Regardless, Niger will need to balance its interests and aspirations with its realities and constraints.
