Following the recent military coup in Niger, the price of uranium has experienced a slight increase. Niger, ranked as the world’s seventh-largest producer of uranium, has continued its mining operations despite the political upheaval. Uranium, essential for nuclear energy and cancer treatment, saw its spot price rise marginally to $56.25 a pound on Monday, up from $56.15 a week earlier, as reported by market research firm and consultancy UxC.
Over the past three years, the price of uranium has doubled, although it remains significantly lower than its peak of $140 in 2007. Ben Godwin, Head of Analysis at Prism Political Risk Management in London, informed Al Jazeera that the recent events in Niger, which contributes to 4% of the global uranium supply, could have substantial implications, particularly for Europe, where uranium markets are currently tight. He noted that there has been a nearly 40% increase in the uranium spot price year to date due to rising demand.
Orano, a French nuclear fuels company operating uranium mines in Niger, stated that its operations have continued as usual. The company emphasized that 99% of its staff in Niger are local nationals. Jonathan Hinze, President of UxC, pointed out that the spot price has remained relatively stable partly because Orano engages in long-term uranium contracts and summer months are typically slow for the spot market. However, he suggested that the impact of the coup might become more pronounced in the market over time, potentially leading to higher uranium prices due to the tight supply-demand balance.
The European Union’s nuclear agency, Euratom, indicated that there is no immediate risk to Europe’s nuclear power production even if uranium deliveries from Niger were to be disrupted, as EU utilities have sufficient inventories to last for three years. In 2022, Niger was the second-largest supplier of natural uranium to the EU, as per Euratom.
Godwin also highlighted potential financial implications for Niger, noting that half of the country’s uranium exports are currently directed to France and the broader European Union. The recent coup in Niger has led to the detention of senior politicians, including the mines minister, amidst international calls for the restoration of democratic governance.