The Government of Niger has confirmed its “full support” for Global Atomic Corporation’s (GAC) Dasa uranium project, according to GAC. The project intends to make its first yellowcake deliveries to utilities in 2025. The project will not be influenced by a recent U.S. decision to put a hold on U.S. Development Bank financing following the coup that took place in Niger earlier this year.
On the 10th of October, the U.S. State Department officially designated the events in the African republic at the end of July 2023 as a “coup d’état”. Most U.S. assistance to the government of Niger has been suspended pending action by Niger to return to “democratic governance”. This includes the U.S. Development Bank financing. The suspension does not apply to humanitarian, food and health assistance.
GAC has its headquarters in Toronto, Canada. It is developing a high-grade uranium deposit sixty-five miles south of the established uranium mining town of Arlit. GAC said that it has been “engaged in contingency planning with parties interested in non-dilutive financing options at the operating level” from groups interested in purchasing uranium from the mine.
Existing uranium offtake agreements with utilities are unaffected by the State Department decision, according to GAC. The company has no “no immediate need to finance” because it has sufficient cash on hand for the next year. GAC recently announced its third offtake agreement for the sale of as much as three and a half million pounds of U2O8 from the project to a North American utility beginning in 2026. It has received additional Requests for Proposal for uranium offtake agreements from utilities. Almost one and a half million pounds of U2O8 over the first five years of the mine’s operation, representing almost thirty percent of the scheduled production, are now contracted under such offtake agreements.
Stephen Roman is the Global Atomic President and CEO. He said, “The Government of Niger has confirmed its full support for the Dasa Project and recognizes it’s a new mine that will benefit the Republic of Niger by creating new jobs and opportunities for local business and revitalize the northern region of the country. The Government has offered its encouragement in the development of Dasa and all support required to accelerate construction and the start of mining operations.”
Logistics issues regarding importing goods into Niger are being addressed by the government. Niger has recently given full approval for the transport of goods via ports in Ghana and Togo and overland via Burkina Faso, according to GAC. Internal cargo flights are expected to be restored shortly.
Mine excavation began at Dasa in 2022. The project’s 2021 Phase1 Feasibility Study estimates that yellowcake delivered to utilities can begin in 2025. A revised mine plan for Dasa that will integrate recently updated mineral resource figures is nearing completion. It will form the basis of a revised feasibility study to be completed in the first half of 2024, according to GAC.
Hopefully, Niger will return to “democratic governance” soon so regular commercial operations can be restored.