| The next potential squeeze on uranium supply could | | | | demand to have greater control over Niger's mineral |
| come from terrorism, not nature. | | | | resources, especially the country's uranium interests. |
| The world's seventh and eighth uranium producing | | | | Uranium comprises more than 70 percent of the |
| mines are found in the Republic of Niger: the | | | | country's exports. Ironically, Niger derives 100 percent |
| underground Akouta and the open pit Arlit. Together | | | | of its electricity from fossil fuels. The |
| they produced 3434 tonnes of uranium in 2006, | | | | electricity-producing power plant the rebels attacked |
| according to the World Nuclear Association. This | | | | earlier this year generates power to mine uranium. |
| accounted for more than eight percent of the world's | | | | In 1998, the Tuareg nomads were promised greater |
| mining production last year. | | | | autonomy by the Niamey-based government in |
| How badly would this impact a tight uranium market | | | | southern Niger, but all promises appear to have been |
| if either of the Niger mines stopped producing? | | | | broken. Rebellion by the tribespeople has been |
| A Paris-based spokesman for the Niger Movement | | | | sporadic, yet violent, since the 1960s. |
| for Justice (MNJ), Seydou Kaocen Maiga, told | | | | Thompson reported in his travel advisory, "Sources |
| reporters this weekend, "This region has been | | | | on the ground suggest that the group (MNJ) is largely |
| declared a war zone by the government and in this | | | | made up of veteran Tuareg militants, who were |
| situation we cannot allow the Chinese to continue | | | | integrated into the Niger military under the terms of |
| extracting natural resources while civilians are being | | | | the 1998 agreement and subsequently defected." |
| killed." | | | | In question is who dictates how the land is used - |
| He had made this statement after Tuareg and other | | | | whether for agriculture or uranium mining. The Tuareg |
| nomadic tribes, led by the highly trained militant | | | | nomads want the arable land for their camels, goats |
| Aghaly ag Alambo, kidnapped China Nuclear | | | | and sheep. |
| International Uranium (Sino-U) deputy general | | | | The agriculture and livestock sectors provide about |
| manager Zhang Guohua. The kidnapping took place | | | | 80 percent of the country's employment. Only 15 |
| near Ingall, an area which is currently being heavily | | | | percent of Niger's land is arable, and herein lies the |
| prospected for uranium deposits, and which we | | | | problem. The Chinese have been exploring near the |
| discussed nearly 15 months ago. | | | | oasis of Indall, which because of its salt diapirs could |
| Ag Alambo appears to be emerging as a folk hero | | | | host prolific uranium deposits. |
| among the nomadic tribes, who control northern | | | | But the salty plains hold a cultural significance. Each |
| Niger and where the uranium mines are located. | | | | September, as they have for centuries, Tuareg, Peul |
| We have been following the Tuareg story since April, | | | | and Arab nomads gather for the annual 'salt cure.' |
| when thirty armed MNJ nomads attacked Niger's | | | | During their annual reunion, they exchange news of |
| Akouta uranium mine, controlled by an AREVA | | | | their nomadic travels while their livestock graze on |
| subsidiary. A security guard and three others were | | | | the grass of the oasis. |
| killed. There had been two previous violent incidents | | | | An MNJ spokesman explained that if Indall became a |
| before then, but none were uranium mining related. | | | | mining town, it would be a 'disaster.' |
| Little took place until June when another 20 MNJ | | | | And a disaster is what could possibly occur between |
| members boldly, but unsuccessfully, attacked an | | | | now and September, before the annual nomadic |
| international airport located in Agadez. This is another | | | | gathering, should the MNJ insurgents continue |
| area being prospected for uranium deposits. In late | | | | targeting uranium interests in Niger. |
| June, a widely respected security expert, Neil | | | | This is not an anomalous episode, open to instant |
| Thompson of RED24, issued a travel warning advising | | | | resolution. The traditional Tuareg lifestyle has been |
| 'against all non-essential travel to the northern parts | | | | collapsing since the 1970s because of desertification |
| of Niger.' Thompson was formerly the Detective | | | | and drought, especially the severe droughts of |
| Superintendent in the UK's National Crime Squad, is a | | | | 1972-74 and 1984-85. Having found themselves |
| trained hostage negotiator, and has worked closely | | | | forced onto the economic and political sidelines, they |
| with foreign intelligence and law enforcement | | | | took up arms in the 1990s. This led to the resolution |
| agencies. | | | | of 1998, which was never honored. Dissatisfaction |
| Thompson also wrote in his travel advisory, "The | | | | has driven the nomads to rebel. One expert |
| combination of widespread Tuareg discontent, a | | | | commented, "The Tuareg problem in Niger was |
| highly motivated and increasingly capable Tuareg | | | | never resolved." |
| insurgent group, and the Niger government's | | | | And now the Tuareg and other nomads appear to |
| entrenched political position suggests that a | | | | have banded together to reclaim their territory, which |
| protracted, and possibly bloody, conflict in northern | | | | includes uranium prospecting licenses awarded to |
| Niger is now highly likely, and may even spread to | | | | foreign operators. |
| neighbouring countries." The MNJ has been active for | | | | Most likely to be impacted should the Akouta |
| the past six months, as the spot uranium price | | | | underground uranium mine suffer any damage is |
| reached a historic high. | | | | AREVA, which owns 34 percent of the Cominak, the |
| A week before the Chinese uranium executive was | | | | company which mines this deposit. Other foreign |
| kidnapped, Thompson warned the MNJ would "attack | | | | companies holding interests are Japan's Overseas |
| 'softer' targets, such as foreign companies and | | | | Uranium Resource Development Company (25 |
| personnel." | | | | percent) and Spain's Enusa (10 percent). Uranium |
| Earlier this year, Niger's Minister of Mines and Energy, | | | | concentrates, produced in Niger, are mostly shipped |
| Mohammed Abdoulahi, said his staff was reviewing | | | | to Comurhex (France) for conversion. |
| about 100 exploration applications from 26 companies. | | | | Recent events show a departure from statements |
| After Namibia had closed the 'exploration license' | | | | made by Dr. John North, then-director of uranium |
| window, many chose to pursue uranium opportunities | | | | explorers North Atlantic Resources and Northwestern |
| in Niger. | | | | Mineral Ventures, who told us, "My experience with |
| Most eager were the Chinese. The country had | | | | Niger is that it's a peaceful, democratic country with |
| announced ambitious plans to build new nuclear | | | | no civil unrest." |
| reactors to continue fueling China's astounding GDP | | | | Just as with copper strikes, or the potential thereof, |
| growth, while at the same time hoping to reduce its | | | | taking place in South America, production disruptions |
| share of carbon dioxide emissions. China is the world's | | | | can impact a metal's price. The same could be said |
| largest consumer of coal and hopes to reduce its coal | | | | for uranium, especially for one of the world's leading |
| dependence through the use of nuclear, natural gas | | | | producers. |
| and other less pollutive alternatives. | | | | Our conclusions are highly speculative and should not |
| The Tuareg rebels have complained about Chinese | | | | be construed as investment advice. However, to the |
| workers taking the jobs of local workers. Ag Alambo | | | | south in Nigeria's Niger Delta, another terrorist group, |
| issued a warning that he was opposed to foreign | | | | MEND - Movement for the Emancipation of the Niger |
| companies supplying Niger's national army, which has | | | | Delta - has been dictating the world's gasoline prices |
| been detaining and killing civilians during a brutal | | | | as a result of their kidnappings. |
| regional security crackdown. | | | | It's Africa. Anything can happen. Even with the |
| At the root of the recent Tuareg hostilities is the | | | | uranium price. |