Move reflects ‘promising environment’ for nuclear energy
France has injected €300m ($330m) into state-controlled uranium producer Orano as it seeks to relaunch the country's uranium industry, the company and the economy ministry said Thursday.
The company issued new shares which were bought entirely by the French state, bringing its stake to 90.3%, the company said.
“This operation demonstrates the willingness of the French state as a shareholder to contribute to the implementation of the strategic plan of Orano and its development,” Orano said in a statement.
“It reflects a promising environment with new perspectives for nuclear energy in France and around the world to meet climate and sovereignty issues,” the statement said.
The money will finance projects such as an extension of the Georges-Besse II enrichment plant in the south of France, which will increase the group's capacity by a third.
The uranium enrichment market is dominated by four players: Russia's Rosatom with a 43% stake, European group Urenco (31%), China’s CNNC, and Orano (12%).
Russia’s 2022 invasion of Ukraine led European countries to seek to cut their reliance on Rosatom.
Urenco has announced expansions for its production facilities in the US, Germany, and the Netherlands, seeking an additional 1.8 million separative work units (SWU) per year globally across the projects.
Orano said last week it is halting its uranium production in Niger from 31 October, citing a “highly deteriorated” situation and its inability to operate.
The Nigerien government, whose leader Abdourahamane Tiani seized power in a July 2023 coup, has previously made clear it would overhaul rules regulating the mining of raw materials by foreign companies.
Orano-owned mining subsidiary Somair’s worsening financial difficulties have “compelled the company to suspend its operations”, in the Artlit region of north Niger where Orano has operated since 1971, the French group’s Paris spokeswoman said.
