Niger’s Coup and Uranium: Weakening of China’s Sphere of Influence

Alors qu’un coup d’état vient de renverser le gouvernement de Tandja Mamadou au Niger, il est possible que la junte militaire remette en cause les intérêts des compagnies minières. Selon une étude menée par l’EGE, ce n’est pas Areva qui risque le plus, sinon les sociétés Chinoises et Canadiennes qui avaient bénéficié d’une relation étroite avec la famille de Tanja Mamadou.

When a military coup was to overthrown Tandja’s Mamadou government last February, it was evident that the future of international mining companies operating in Niger was in peril. Niger, a former French colony in southwest Africa, is both one of the poorest countries, and paradoxically, the third Uranium producer in the world.

France’s nuclear flagship, Areva-Niger (ex-Cogema), had benefited from a 40 year strategic alliance for the extraction of uranium; that in exchange of diplomatic, military, and economic support from the French government.

But in 2007 Areva’s monopole was abruptly severed by Tandja’s government, this on allegations that the French firm supported Niger’s Tuareg insurgency (MNJ). Nevertheless, the rising prices of Uranium since the late 90’s, the government’s will to diversify their uranium contracts, and Tandja’s family recent ties with Chinese and Canadian mining firms are factors not to be ignored.

Tandja’s family and the Chinese “special relation”

According to the book “Chinafrique” by Michel Beuret and Serge Michel, when Areva lost its monopole in 2007, one of the first companies to obtain a mining permit was Hong Kong’s based Trendfield Holdings. Trenfield is co-directed by Hong Kong Businessman Y. Y. Tang and the French Guy Duport, who were close to Tandja’s son, Ousmane  Tandja, commercial counselor in Hong Kong’s Niger Embassy under Tandja’s regime.

In August 2009, the French journal Libération had signaled that corruption was behind many of the mining permits in Niger, and quoted sources stating that Trendfield was a slush fund of the Tandja family. Eventually, the mining firm’s special relations with Niger’s government were instrumental in the introduction of many of Areva’s competitors in Niger. This is particularly true for the China National Nuclear Corporation (CNCP), as it can be confirmed in Guy Duport’s Linked In public profile that Trendfield was the intermediary between Tandja’s government and the CNCP in the granting of the mining permits of the Azelik mines.

Beuret and Michel also state that Trendfield is controlled by mining giant Robert Friedman, director of the Canadian firm Ivanhoe Mining Ltd., which is also partially owned by the Australian global miner Rio Tinto. Not surprisingly, Trenfield Holdings owns 51 percent of the capital of Govi High Power Exploration Niger Holding’s (GoviEx), a company owned by Robert Friedman’s son, Govind Friedman. GoviEx obtained uranium exploration permits in the mines of Tagaza, Madaouela, Anou Melle, and has recently signed a strategic partnership with the world’s biggest uranium producer, the Canadian Cameco Corp.

Coup against Tandja: Who should lose the most?

As one in every three EDF nuclear reactors in France runs on uranium from Niger, France’s Areva had to made concessions in order to face the newly arrived Chinese and Canadian competition. As by 2008, Tandja had successfully doubled the price of yellowcake ore extracted by France, and no signs of progress where made for the French firm until January 2009 when Areva gained the mining permit of Imouraren (Africa’s largest uranium mine), this by agreeing to give one third of the extraction for the commercial use of Niger’s government.

Tandja Mamadou must have been blinded by his successful diversification of mining and oil contracts that in August 2009 he ran a disputed referendum for securing three additional years in office and unlimited runs at future terms. The military coup that was to oust him back in February, 2010 has certain legitimacy as Tandja’s family grew rich at the expenses of the people of Niger.

As a visual mapping from a group of students of the School of Economic Warfare portrays, it is not Areva who is losing the most with Niger’s most recent coup. As close ties with the Tandja family were fundamental in the obtaining of uranium exploitation permits of both Chinese and Canadian mining firms in Niger (ex. Trenfield Holdings), it is obvious that China and Canada will be anxiously watching further developments of Niger’s domestic politics.

Juan Héctor Algrávez