- Atomic Eagle will reassess Madaouela for a larger operation than the 2.67 million pounds a year envisioned in the 2022 feasibility study.
- Uranium contract prices have climbed from the $55-per-pound benchmark used in the previous mine plan to $96.50 at the end of August 2026.
- Niger now owns 40% of the project, but must fund part of that stake and still faces a blocked export route through Cotonou.
Niger could end up with a larger and more productive uranium mine at Madaouela than the operation planned before the project lost its permit in 2024. Australian partner Atomic Eagle announced on September 30 a new assessment of a larger-scale development, a prospect that could increase the benefits for the government, which now holds a 40% stake following the compromise reached in August to revive the project.
The 2022 feasibility study envisioned average annual production of 2.67 million pounds of uranium oxide over a 19-year mine life. The new program will assess a plant capable of processing more ore, alternative mining methods and the simultaneous development of open-pit and underground deposits. It will also examine mineralization excluded from the previous mine plan.
A stronger uranium market has changed the economics behind that earlier plan. The selection of ore considered economically viable at the time relied on a uranium price of $55 per pound. Atomic Eagle now points to a long-term contract price indicator of $96.50 per pound at the end of August 2026.
The higher price could make previously excluded volumes profitable to extract, although that will depend on updated costs. For Niger, a larger operation could help the country return to the ranks of the world’s major uranium suppliers after years of declining output.
Niger lost its position as Africa’s largest uranium producer in 2016. Production fell to 962 metric tons in 2024 from more than 4,000 tons in 2015, according to the World Nuclear Association.
A larger mine is not guaranteed
The revised project remains subject to several uncertainties. Atomic Eagle has not announced a new production target and cautions that the revised assumptions do not guarantee an increase in economically recoverable volumes.
A new resource estimate prepared under Australia’s JORC standards is expected in the fourth quarter of 2026, followed by a preliminary study in the first quarter of 2027. Those assessments should provide a clearer picture of potential production volumes, costs, energy requirements and logistics.
Transport remains one of the challenges. Niger’s natural route to international markets through the Port of Cotonou is blocked because the shared Benin-Niger border remains closed. Any larger operation will therefore also have to address the logistics required to move its output to international buyers.
Niger must finance part of its 40% stake
Financing will be another test of how much Niger ultimately gains from the project’s revival. Of the government’s 40% interest in Madaouela, only 15% is free-carried. The remaining 25% requires Niger to contribute to project fundraising.
Atomic Eagle has provided the government with a $40 million credit facility to cover its initial expected contributions. Beyond that facility, Niamey’s ability to finance its share of future funding requirements will be important as the project moves toward a new development plan.
The project’s impact will also depend on whether commitments on local content translate into jobs and contracts for Nigerien companies.
The coming studies will therefore determine more than whether Madaouela can support a bigger uranium mine. The revised resource base, production costs, infrastructure requirements and financing needs will establish how much additional production the stronger uranium market can support—and how much of the project’s revival can ultimately benefit Niger’s uranium industry and wider economy.
Source: Ecofin Agency