Atomic split

Atomic split

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Niger is one of the world's poorest countries, with over 60 percent of its population surviving on less than $1 a day. But the former French colony is also the planet's fourth biggest producer of uranium.

French state-owned nuclear company Areva dominates mining of the ore in Niger. Now the African country’s government, hoping to see more benefits from its mineral wealth, is demanding a better deal from Areva.

. ARLIT, Niger. REUTERS/Joe Penney

France began mining uranium ore in the desert of northern Niger in the early 1970s. At the time, Arlit was a cluster of miners' huts stranded between the sun-blasted rocks of the Air mountains and the sands of the Sahara.

The 1973 OPEC oil embargo changed that. France embraced nuclear power to free itself from reliance on foreign oil and overnight this remote corner of Africa became crucial to its national interests.

Arlit has grown into a sprawling settlement of 117,000 people, while France now depends on nuclear power for three-quarters of its electricity, making it more reliant on uranium than any country on earth.

With Niger hoping to profit more from the industry, its government began negotiating with Areva more than a year ago, but failed to clinch an agreement before the company’s 10-year mining contracts expired on December 31.

The old agreements have never been made public. But Reuters has reviewed documents which reveal that Areva’s mines pay no export duties on uranium, no taxes on materials and equipment used in mining operations, and a royalty of just 5.5 percent on the uranium they produce. A spokesman for Areva declined to confirm the authenticity of the documents and did not comment on their contents.

Areva, which produced nearly one fifth of the world’s uranium in 2012, says a higher royalty rate would make its business in Niger unprofitable.

. ARLIT, Niger. REUTERS/Joe Penney

Some who live near the mine in Arlit feel angry that it has not brought greater prosperity. Around 2,000 mine employees live in neat estates, with a clubhouse and restaurants. The rest of the city is dirt-poor, with unpaved streets and ramshackle mud-brick homes.

"Instead of mountains of waste in Arlit, we want buildings, homes, hospitals and investment," said Mining Minister Omar Hamidou Tchiana. "After more than 40 years Areva has not even built a headquarters in Niger."

The firm says it does plenty, spending 6 million euros a year on health and economic development projects in Niger. There is no public hospital, but the mines allow residents access to their clinics free of charge. Areva has also built and renovated local schools.

"We contribute directly through the jobs we are creating and we generate taxes for the state budget. This is our contribution, but we cannot do everything," Areva chief executive Luc Oursel told Reuters.

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Slideshow

A man walks along the street in Niamy, the capital of Niger.
. NIAMEY, Niger. REUTERS/Joe Penney

A man walks along the street in Niamy, the capital of Niger.

Men toss squash onto the banks of the Niger River.
. NIAMEY, Niger. REUTERS/Joe Penney

Men toss squash onto the banks of the Niger River.

Six-year-old Hauwaou peers out from behind a wall next to a garbage dump in Niamey.
. NIAMEY, Niger. REUTERS/Joe Penney

Six-year-old Hauwaou peers out from behind a wall next to a garbage dump in Niamey.

A boy walks among mud brick houses in the old city of Agadez.
. AGADEZ, Niger. REUTERS/Joe Penney

A boy walks among mud brick houses in the old city of Agadez.

An usher looks at a picture of Niger's President Mahamdou Issoufou in the Palais de Congres in Niamey. Issoufou started pushing for a better price for Niger's uranium almost as soon as he was elected in 2011.
. NIAMEY, Niger. REUTERS/Joe Penney

An usher looks at a picture of Niger's President Mahamdou Issoufou in the Palais de Congres in Niamey. Issoufou started pushing for a better price for Niger's uranium almost as soon as he was elected in 2011.

Government officials take part in a meeting of the government consulting body, the Economic, Social and Cultural Council.
. NIAMEY, Niger. REUTERS/Joe Penney

Government officials take part in a meeting of the government consulting body, the Economic, Social and Cultural Council.

Government officials attend the meeting.
. NIAMEY, Niger. REUTERS/Joe Penney

Government officials attend the meeting.

Ushers sit as the meeting of the government consulting body goes ahead.
. NIAMEY, Niger. REUTERS/Joe Penney

Ushers sit as the meeting of the government consulting body goes ahead.

Journalist Raby Bako rehearses before hosting the nightly news broadcast at national television ORTN headquarters in Niamey.
. NIAMEY, Niger. REUTERS/Joe Penney

Journalist Raby Bako rehearses before hosting the nightly news broadcast at national television ORTN headquarters in Niamey.

A man walks past a school in Niamey.
. NIAMEY, Niger. REUTERS/Joe Penney

A man walks past a school in Niamey.

Men work in a leather tannery in the city.
. NIAMEY, Niger. REUTERS/Joe Penney

Men work in a leather tannery in the city.

Oudou Zibou, the manager of the Savana Hotel, sits in the hotel's reception in the town of Arlit, where the French nuclear company Areva mines uranium.
. ARLIT, Niger. REUTERS/Joe Penney

Oudou Zibou, the manager of the Savana Hotel, sits in the hotel's reception in the town of Arlit, where the French nuclear company Areva mines uranium.

A man covers his face during a sandstorm at night at a hotel in Arlit.
. ARLIT, Niger. REUTERS/Joe Penney

A man covers his face during a sandstorm at night at a hotel in Arlit.

National guardsman Ayouba Dakka poses for a picture in the prefecture.
. ARLIT, Niger. REUTERS/Joe Penney

National guardsman Ayouba Dakka poses for a picture in the prefecture.

Security officals guard the entrance to Areva's Somair uranium mining facility.
. ARLIT, Niger. REUTERS/Joe Penney

Security officals guard the entrance to Areva's Somair uranium mining facility.

Areva's open-cut Somair mine is seen in the town.
. ARLIT, Niger. REUTERS/Joe Penney

Areva's open-cut Somair mine is seen in the town.

Uranium ore is heap leached with sulphuric acid at Areva's Somair mine.
. ARLIT, Niger. REUTERS/Joe Penney

Uranium ore is heap leached with sulphuric acid at Areva's Somair mine.

Sulfuric acid lies piled up at Areva's Somair uranium mining facility.
. ARLIT, Niger. REUTERS/Joe Penney

Sulfuric acid lies piled up at Areva's Somair uranium mining facility.