Atomic Eagle Regains Niger Uranium Project as Mining Sector Risk Eases

Atomic Eagle has regained control of its Madaouela uranium project in Niger, marking a significant development for the country’s uranium sector and potentially signalling a more pragmatic approach by the government towards foreign mining investors.

The Australian-listed uranium company has reached a new Mining Convention with Niger’s military government that gives Atomic Eagle a 60% interest in Madaouela, while the Nigerien government will retain 40%.

The agreement comes two years after Niger revoked the mining permit held by predecessor company GoviEx Uranium, triggering an international arbitration dispute.

New Agreement Ends Long-Running Dispute

Under the new agreement, Atomic Eagle will receive a revised exploration permit for Madaouela. The company is also expected to withdraw its arbitration proceedings against the Niger government within a week of the Convention being signed.

GoviEx initiated arbitration in December 2024 through the International Centre for Settlement of Investment Disputes following the cancellation of its mining permit.

The resolution represents a major step forward for Atomic Eagle, which says regaining Madaouela significantly expands its uranium resource base and strengthens its project portfolio.

The company now has two years to update the feasibility study, complete environmental and social assessments and secure project financing.

Niger Signals Continued Interest in Uranium

The agreement could also indicate a shift in Niger’s relationship with international mining companies.

The military government has taken a tougher approach towards foreign miners since taking power, particularly regarding control of the country’s uranium resources. French company Orano’s Somaïr uranium operation was nationalised last year after a prolonged dispute.

Niger remains an important player in the global uranium market, accounting for around 5% of global uranium demand and ranking among the world’s leading producers.

The government has also awarded a permit to state-owned Tsumco for the In Azaoua area, where Orano previously held a major interest.

The latest developments suggest that while Niger wants greater state participation in its mineral resources, it also recognises the need for investment and technical expertise to bring uranium projects into production.

Madaouela Holds Significant Resource Potential

Madaouela was previously advanced to feasibility stage, with a 2022 study outlining a potential 19-year mine life and production of approximately 50.8 million pounds of uranium oxide (U3O8).

The project was estimated to require initial capital of about $343 million, with an after-tax net present value of $140 million and an internal rate of return of 13.3%.

Atomic Eagle has reported a historical resource of approximately 116.5 million pounds of U3O8 across measured, indicated and inferred categories and plans to update the estimate to JORC standards.

Wider Implications for Niger Mining

The resolution could have implications beyond Madaouela.

Niger is seeking to increase national control over its mineral wealth while attracting the capital required to develop major mining projects. A workable agreement with Atomic Eagle could provide a model for future partnerships between the government and international investors.

The development may also benefit Global Atomic’s Dasa uranium project, another major uranium development in Niger. Global Atomic has faced delays in securing a proposed $295 million debt facility, partly because of concerns surrounding Niger’s political and regulatory environment.

A more stable investment framework could therefore improve the prospects for uranium development across the country.

For Niger, the challenge will be balancing greater state ownership with the need to maintain investor confidence. For mining companies, the Atomic Eagle agreement offers evidence that negotiated settlements remain possible despite the country’s changing mining landscape.

Image:A drill rig at Atomic Eagle’s Madaouela project in Niger. Credit: Atomic Eagle