Niger Withdraws Uranium Mining Rights from GoviEx

Canadian miner GoviEx Uranium (GXU.V) has faced a significant setback in its efforts to develop a uranium project in Niger. The West African country recently revoked GoviEx's mining permit for the Madaouela uranium project, situated in the Agadez region in the northern part of Niger. 

  The Niger government informed GoviEx that it no longer holds the rights over the perimeter of the Madaouela mining permit, effectively withdrawing its license.

    This decision came just weeks after the government also revoked the operating permit for French company Orano's Imouraren uranium mine.

   GoviEx expressed its intention to challenge this decision through appropriate legal channels.

   - GoviEx began operations in Niger back in 2007 and has made significant progress with the Madaouela project.

   Despite historically low uranium prices, the company completed extensive exploration work, including drilling approximately 650,000 meters to define a substantial mineral resource—one of the largest known in the world.

  The Madaouela Project was poised for development, especially with the recent recovery in uranium prices.

 The government of Niger holds a 20% stake in COMIMA SA, the Nigerien company set up to develop the Madaouela project.

   The project was expected to create up to 800 jobs over its projected 20-year mine life, along with substantial royalty payments and taxes to the government.

Niger possesses Africa's highest-grade uranium ores and ranks as the world's seventh-largest uranium producer.

   Uranium is not only a crucial fuel for nuclear energy but also finds applications in cancer treatment, naval propulsion, and nuclear weapons.

The setback for GoviEx occurred just as the company was in the process of raising approximately $200 million through debt financing to fund the Madaouela project.