| The next potential squeeze on uranium supply could | | | | uranium interests. Uranium comprises more than 70 |
| come from terrorism, not nature. | | | | percent of the country’s exports. Ironically, Niger |
| The world’s seventh and eighth uranium | | | | derives 100 percent of its electricity from fossil fuels. |
| producing mines are found in the Republic of Niger: | | | | The electricity-producing power plant the rebels |
| the underground Akouta and the open pit Arlit. | | | | attacked earlier this year generates power to mine |
| Together they produced 3434 tonnes of uranium in | | | | uranium. |
| 2006, according to the World Nuclear Association. | | | | In 1998, the Tuareg nomads were promised greater |
| This accounted for more than eight percent of the | | | | autonomy by the Niamey-based government in |
| world’s mining production last year. | | | | southern Niger, but all promises appear to have been |
| How badly would this impact a tight uranium market | | | | broken. Rebellion by the tribespeople has been |
| if either of the Niger mines stopped producing? | | | | sporadic, yet violent, since the 1960s. |
| A Paris-based spokesman for the Niger Movement | | | | Thompson reported in his travel advisory, |
| for Justice (MNJ), Seydou Kaocen Maiga, told | | | | “Sources on the ground suggest that the group |
| reporters this weekend, “This region has been | | | | (MNJ) is largely made up of veteran Tuareg militants, |
| declared a war zone by the government and in this | | | | who were integrated into the Niger military under the |
| situation we cannot allow the Chinese to continue | | | | terms of the 1998 agreement and subsequently |
| extracting natural resources while civilians are being | | | | 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 |
| nomadic tribes, led by the highly trained militant | | | | Tuareg nomads want the arable land for their camels, |
| Aghaly ag Alambo, kidnapped China Nuclear | | | | goats 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 |
| near Ingall, an area which is currently being heavily | | | | 15 percent of Niger’s land is arable, and herein lies |
| prospected for uranium deposits, and which we | | | | the problem. The Chinese have been exploring near |
| discussed nearly 15 months ago. | | | | the oasis of Indall, which because of its salt diapirs |
| Ag Alambo appears to be emerging as a folk hero | | | | could 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 |
| when thirty armed MNJ nomads attacked Niger’s | | | | cure.’ During their annual reunion, they exchange |
| Akouta uranium mine, controlled by an AREVA | | | | news of their nomadic travels while their livestock |
| subsidiary. A security guard and three others were | | | | graze on 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 | | | | collapsing since the 1970s because of desertification |
| parts of Niger.’ Thompson was formerly the | | | | and drought, especially the severe droughts of |
| Detective Superintendent in the UK’s National | | | | 1972-74 and 1984-85. Having found themselves |
| Crime Squad, is a trained hostage negotiator, and has | | | | forced onto the economic and political sidelines, they |
| worked closely with foreign intelligence and law | | | | took up arms in the 1990s. This led to the resolution |
| enforcement 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 | | | | Most likely to be impacted should the Akouta |
| for 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 | | | | companies holding interests are Japan’s Overseas |
| “attack ‘softer’ targets, such as foreign | | | | Uranium Resource Development Company (25 |
| companies and personnel.” | | | | percent) and Spain’s Enusa (10 percent). Uranium |
| Earlier this year, Niger’s Minister of Mines and | | | | concentrates, produced in Niger, are mostly shipped |
| Energy, Mohammed Abdoulahi, said his staff was | | | | to Comurhex (France) for conversion. |
| reviewing about 100 exploration applications from 26 | | | | Recent events show a departure from statements |
| companies. After Namibia had closed the | | | | made by Dr. John North, then-director of uranium |
| ‘exploration license’ window, many chose to | | | | explorers North Atlantic Resources and Northwestern |
| pursue uranium opportunities in Niger. | | | | Mineral Ventures, who told us, “My experience |
| Most eager were the Chinese. The country had | | | | with Niger is that it’s a peaceful, democratic |
| announced ambitious plans to build new nuclear | | | | country with no civil unrest.” |
| reactors to continue fueling China’s astounding | | | | Just as with copper strikes, or the potential thereof, |
| GDP growth, while at the same time hoping to | | | | taking place in South America, production disruptions |
| reduce its share of carbon dioxide emissions. China is | | | | can impact a metal’s price. The same could be |
| the world’s largest consumer of coal and hopes | | | | said for uranium, especially for one of the |
| to reduce its coal dependence through the use of | | | | world’s leading producers. |
| nuclear, natural gas and other less pollutive | | | | Our conclusions are highly speculative and should not |
| alternatives. | | | | be construed as investment advice. However, to the |
| The Tuareg rebels have complained about Chinese | | | | south in Nigeria’s Niger Delta, another terrorist |
| workers taking the jobs of local workers. Ag Alambo | | | | group, MEND – Movement for the Emancipation |
| issued a warning that he was opposed to foreign | | | | of the Niger Delta – has been dictating the |
| companies supplying Niger’s national army, which | | | | world’s gasoline prices as a result of their |
| has been detaining and killing civilians during a brutal | | | | 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. |
| demand to have greater control over Niger’s | | | | COPYRIGHT © 2007 by StockInterview. |
| mineral resources, especially the country’s | | | | |