Share By Melissa Pistilli-Exclusive to Uranium Investing News

Last week in Niger, a military junta led by Platoon Comander Salou Djibo calling itself the Supreme Council for the Restoration of Democracy (CSRD) launched a bloody coup against the elected government of President Tandja Mamadou.

The United Nations, the European Union, and the African Union, which has subsequently expelled Niger, have all condemned the military takeover that involved the deaths of at least three people in a four-hour gun battle.

World leaders say the coup is a reaction to President Tandja’s recent actions that involved dissolving parliament last May and declaring emergency powers after the Nigerian Constitutional Court rejected his bid to eliminate presidential term limits. He then disbanded the court in July and appointed those loyal to him.

Uranium is King
Uranium seems to be the only thing going for the impoverished and politically unstable Niger, ranked last of 182 countries on the UN’s 2009 Human Development Index. This latest coup is the fourth since 1974 in the mostly Islamic West African country whose population totals 15 million.

Yellowcake accounts for 72 per cent of national exports from Niger, the world’s sixth-biggest uranium producer responsible for about 7 per cent of global supply in 2008. According to analysts at Macquarie Bank, that number should increase to around 10 per cent by 2015.

France’s Foothold

France has dominated Niger’s resources since it became a French colony in 1922 and the French have managed to hold onto its vast uranium reserves even after the African nation acquired independence in 1960.

Niger plays an important role in meeting France’s energy demands. The European nation obtains three-quarters of its energy needs from nuclear power and 40 per cent of its uranium fuel comes from Niger.

Areva, France’s nuclear energy giant, currently has two major uranium mines in Niger and a third is set to open in two years.

Last year, Areva inked a contract with the Niger government to mine the Imouraren region, a deal that basically gave the company exclusive rights to most of Niger’s uranium resources.

Mining at Inouraren is set to begin in 2012 and is expected to double the country’s uranium output making it the second-largest uranium producer in the world. With a mine life of 35 years, Imouraren is estimated to produce 5,000 tonnes annually.

Friday, a spokeswoman for Areva said that the coup has had no impact on the company’s operations in the region.

Just a Coincidence?

While bloody coups and rebellions are becoming commonplace in many parts of Africa, this one is raising some eyebrows over possible US involvement.

In his most recent article, political consultant and Global Research contributor Michael Carmichael casts light on what could be just an “an odd coincidence.”

According to Carmichael, a Congressional delegation led by Florida Democrat Alan Grayson was in Niger’s capital of Niamey at the time the coup took place reportedly on matters concerning science, technology and humanitarian relief:

“The simultaneous presence of a US Congressional delegation in a uranium-rich Muslim nation at the time of a right-wing military coup is bound to arouse international scrutiny — especially when official spokesmen in Washington are the sole sources to rationalize — if not defend — the military action against the elected government of Niger. ”

Carmichael notes that Rep. Grayson is a member of the Science and Technology Committee, which oversees non-military scientific research and development at federal entities such as NASA, FEMA and the Department of Energy.

Why would the US secretly support a coup against President Tandja? For one thing his actions were jeopardizing billions of dollars in foreign investment in Niger. Also, the man was reportedly cozying up to Libya and Venezuala of all countries. And to top it off there are rumours circulating that he may have been playing lets make a uranium deal with Iran.

Impact on Uranium Market

Edward Sterck of BMO Capital Markets says the coup may actually be good for uranium prices as its new leaders might “interfere with uranium production or place extra demands on producers. Market uncertainty may result in a boost to the spot price of uranium if nervous utilities move to increase inventories.”

Questions about this article? Leave a comment below or contact our editorial team at editor@resourceinvestingnews.com.