(Ecofin Agency) - As the second-largest uranium producer in Africa, Niger is poised to capitalize on rising demand and uranium prices. The country relies on two flagship projects, Dasa and Madaouela, to bolster its revenue streams.

Last week, Niger's Minister of Mines led the groundbreaking ceremony for the uranium processing plant at the future Dasa uranium mine. Canadian firm Global Atomic reported on May 7 that during the event, Commissioner-Colonel Ousmane Abarchi reiterated the government's backing for the project, emphasizing its significance.

"This project is very important for us, both as a government and as a shareholder. We want Dasa to be the starting point for a new mining practice in Niger, with expectations for state revenue management, employment, and the environment," Minister Abarchi stated.

On May 3rd, Niger’s Mines Minister visited Dasa & stated: “Dasa is a reality everyone can see. We are supportive of the SOMIDA team and Global Atomic. This project is very important for us ... We want Dasa to be the start of new Niger mining practice...” https://t.co/0H8H0oBXCj

— Global Atomic Corporation (@AtomicCorp) May 6, 2024

Set to commence production in 2026, Dasa is projected to yield 68.1 million pounds of uranium over 23 years, reinforcing Niger's position as a major global producer. With the growing interest in nuclear power amid the energy transition, the country anticipates increased mining revenues spurred by rising uranium prices.

Niger holds a 20% stake in the Dasa project. It strongly supports the project, in contrast with the Madaouela uranium project. The government threatens to revoke GoviEx Uranium’s license for this project if uranium production does not start by July 3, 2024. The two sides are negotiating for a mutually beneficial resolution.