Niger cabinet approves new Areva uranium deal - CNBC Africa

Niger cabinet approves new Areva uranium deal

Western Africa

by Reuters 0

Areva has agreed to build a new headquarters in the capital Niamey. PHOTO: CFG Niger

This is according to the government and completes two years of often fraught negotiations.

The two parties announced the signature of a new 10-year agreement for Areva’s Somair and Cominak mines in May, but Friday’s green light from President Mahamadou Issoufou and his ministers clears the way for its implementation.

The previous production agreement expired on 31 December, requiring temporary extensions.

(READ MORE: Niger could sign new deal with Areva within days)

Under the deal, Areva agreed to fewer tax breaks and higher royalty rates, the government said in a statement.

The company also agreed to spend 117 million euros or 148 million dollars to rebuild the road to its mines in Arlit, fund a local development project, and build a new headquarters in the capital Niamey.

Niger’s mines minister said in June the country expects more than 20 billion CFA francs or 39 million dollars in additional tax revenues a year, thanks to the renegotiation of the agreement.

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