Orano Anticipates Positive 2025 Amidst Operational Challenges in Niger

Orano reported exceptional financial results for 2024 with revenues reaching EUR5.87 billion, boosted by contracts with Japanese utilities despite losing control of operations in Niger. The company plans to invest significantly in the proposed Zuuvch Ovoo uranium mine in Mongolia, exploring expansion in other regions, while maintaining project commitments despite U.S. political changes. Financial forecasts for 2025 aim close to EUR5 billion in revenue.

Orano, a leading nuclear energy group, reported remarkable financial results for 2024, with CEO Nicolas Maes indicating that positive trends are expected to endure despite losing control over its Niger operations. Key contracts for returning nuclear waste to Japan significantly propelled the company’s revenue, which reached EUR5.87 billion, representing a 23% increase year-on-year, aided by favorable mining market conditions. The firm also saw an increase in EBITDA to EUR2.067 billion, compared to EUR1.228 billion in 2023.

Despite these successes, Maes acknowledged the challenges posed by the loss of operational control in Niger, particularly the subsidiaries Somaïr, Cominak, and Imouraren. The formal recognition of this loss occurred on December 4, 2023. Efforts to reach a resolution with the Niger government remain, and arbitration proceedings are ongoing concerning mining licenses and material on-site. Maes emphasized concern for the 900 employees affected by this situation, who face uncertainty regarding their financial compensation.

Orano’s Mining segment operating income fell from EUR196 million to EUR122 million due to the loss of control; however, increases in uranium prices and favorable currency exchange helped mitigate this decline. Maes clarified that the Niger situation did not affect Orano’s 2024 delivery commitments. Looking ahead, despite the exceptional one-off contracts in 2024, the company forecasts revenue approaching EUR5 billion for 2025 as it advances its investment initiatives.

In January, Orano entered an investment agreement with the Mongolian government to develop the Zuuvch Ovoo uranium mine, planning a USD500 million investment over the four years for project development. This project, utilizing in-situ recovery methods, is projected to require a total investment of USD1.6 billion across its anticipated 30-year life cycle. Initial operations may begin by 2028-2029.

In addition to the Mongolia project, Orano is exploring diversification into other regions, including possible ventures in Uzbekistan and Canada, as well as reviving the Trekkopje project in Namibia, suspended in 2012 due to market conditions. When discussing potential impacts from the recent U.S. administration change, Maes expressed confidence that plans for a new uranium enrichment plant in Tennessee (Project IKE) would proceed without hindrance. An investment decision for Project IKE is projected for 2026 or 2027, amidst bipartisan support for domestic uranium enrichment in the U.S.

In conclusion, Orano has demonstrated strong financial performance for 2024 despite the challenges faced in Niger. The company continues to pursue strategic investments to ensure future growth, particularly in the areas of uranium mining and enrichment. Leadership remains optimistic about revenues and project developments, projecting positive growth through new partnerships and operational plans. The ongoing commitment to defending its interests in Niger itself will significantly affect its operational stability and workforce.

Original Source: world-nuclear-news.org