(Ecofin Agency) - Setting up the Madaouela uranium mine may cost $343 million, according to a feasibility study published in 2022. Once operational, however, the mine could produce up to 50.8 million pounds of uranium over 19 years.

GoviEx Uranium has garnered interest from various financiers totaling over $200 million for the Madaouela uranium project in Niger. In a statement released on March 4, the company disclosed that due diligence by these lenders on its project has commenced, starting with an environmental and social audit conducted by SLR Consulting.

SLR Consulting appointed on behalf of prospective lenders to provide environmental and social due diligence; @GoviExUranium has expressions of interest representing over USD 200 million of potential debt finance for Madaouela https://t.co/eg8vU15JN8 #Uranium $GXU $GVXFF #mining pic.twitter.com/SqqcWa6fp3

— GoviEx (@GoviExUranium) March 4, 2024

"We are pleased to initiate the environmental and social verification required by our potential lenders, marking a positive step towards potential debt financing for the development of Madaouela, which holds one of the largest known uranium resources globally," said Daniel Major, CEO of GoviEx.

The current uranium market conditions may facilitate GoviEx's ability to secure this financing, with ore prices rising and analysts predicting long-term demand growth. Madaouela could help meet this increasing demand, with its anticipated production of 50.8 million pounds over 19 years.

Niger is the second-largest uranium producer in Africa. The country's sole producer, French company Orano, halted operations following the July 2023 coup but announced the resumption of production in February 2024.

Emiliano Tossou