Why Niger?
Key Facts
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Full name
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The Republic of Niger
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Capital
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Niamey
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Population
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15.3 million (2009 est.)
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Area
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1.27 million km²
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Location
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A landlocked country on the southern rim of the Sahara desert in West Africa, Niger is bordered by Algeria and Libya to the north, Chad to the east, Nigeria and Benin to the south, and Burkina Faso and Mali to the west.
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Government
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Niger is a semi-presidential republic whereby the President of Niger is head of state and the Prime Minister is head of government.
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Major languages
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French (official), Arabic, Hausa, Songhai
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Major religions
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Islam, indigenous beliefs
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Main exports
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Uranium, livestock products
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Mining commodities
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Uranium, gold, coal, oil
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Monetary unit
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1 CFA (Communaute Financiere Africaine) franc = 100 centimes
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Niger is home to some of the world's largest deposits of uranium, particularly in the country's Tim Mersoï Basin, with the quality of this product ranking second internationally. The country's mineral sector has consistently accounted for some 40% of exports.
Despite these resources and a strong infrastructural base, including power, water, roads, an international airstrip and Agadez city, the Tim Mersoï Basin region remains relatively unexplored. NGM is intent on developing the potential of its concessions in this region.
Niger Concession Areas with Infrastructure
The country's mining legislation is progressive and encourages overseas private investment, with the new mining code containing a number of incentives for potential investors. These include income tax holidays and many exemptions (customs duty exemption, exemption in some cases from value-added tax, the right to remit dividends freely), equal opportunities for overseas and national investors, and guaranteed freedom from nationalisation or expropriation.
Niger's currency is the CFA franc, which is tied to the French franc and is fully convertible. Foreign exchange regulations are very liberal, although with the requirement that overseas transactions must be authorised by the Ministry of Finance and made through a registered bank.
Although security incidents on mines in Niger have occured in the past as a result of indigenous Touareg seeking more involvement in the uranium mining industry, these have since subsided and NGM is pleased to report a safe working environment for its employees.
As the world's fourth largest uranium producer, a position set to improve over the coming years; Niger is a major contributor to international uranium supply and possesses the necessary legislation and infrastructure to facilitate this industry, just as NGM possesses the necessary technical and commercial experience to explore the resources.
Mines and Infrastructure
The first major discovery of uranium in Niger occurred at Arlit, approximately 200km north of the Company's concessions. The discovery hole in 1970 yielded approximately 0.5% (5,000ppm) U3O8 over 24m from near surface. Production commenced shortly therafter and the open pit and underground mines at Arlit currently produce approximately 3,500tpa of U3O8 with reserves of 80,000t (~176Mlbs) at a mined grade of 0.35% (3,500ppm). Recently, the Imouraren mine received final investment decision from Areva and is now in development. This deposit will be open cut and contains 150,000t (~330Mlbs) of U3O8. It will be mined at a grade of 0.12% (1,200ppm) and is forecast to produce 5,500-6,000tpa (~12Mlbs). Imouraren is located 80km from the Company's northern concession.
Following the discovery at Arlit exploration in other areas has been significantly limited.
Niger's Tim Mersoï Basin is endowed with ample infrastructure to underpin continued growth in the region's rich and growing uranium sector. The area is well serviced by ample electricity, sealed road and rail infrastructure, and proximity to the major city of Agadez and its international airport.
Product is trucked to Burkina Faso, from where it is railed south to the Port of Cotonou in Benin.
Niger Regional Map