Key Minerals in Africa: After Setback in Niger, Canada's Atomic Eagle Accelerates Uranium Project in Zambia

In 2024, Niger revoked GoviEx (now rebranded as Atomic Eagle)’s uranium project at Madaouela. The company deemed this move unfair, but has yet to achieve any resolution. Amid renewed global interest in uranium, Atomic Eagle is now adjusting its strategy.

On Tuesday, Canadian-based Atomic Eagle announced the launch of a 30,000-meter drilling program at its Muntanga uranium project in Zambia. This follows the termination of its Madaouela project in Niger in 2024 due to rapid exploration progress—a move that signals an intensified focus on exploration in Zambia and further consolidation of its presence in the country.

Repositioning Amid Market Recovery

This initiative is part of Atomic Eagle’s broader strategy to expand its footprint in Zambia. The company aims to significantly increase the resource base at the Muntanga uranium deposit, which, according to the latest data released last month, now stands at 58.8 million pounds of uranium.

These targets exceed projections from the feasibility study scheduled for 2025, which anticipates an average annual uranium production of 2.2 million pounds over a 12-year mine life. To achieve this, Atomic Eagle is accelerating development and has secured funding through 2027 for its exploration projects.

This momentum stands in stark contrast to the company’s situation in Niger. In Niger, Atomic Eagle no longer holds any interest in the Madaouela project. Its mining license was revoked in July 2024 and returned to the government of Niger.

Atomic Eagle has initiated arbitration proceedings with the International Centre for Settlement of Investment Disputes (ICSID). Later, in February 2025, the company agreed to suspend the arbitration process and engage in negotiations with the Niger government.

More than a year has passed since then, negotiations remain ongoing without tangible progress, leaving the project stalled. The Madaouela project holds approximately 100 million pounds of proven and indicated resources, with an estimated production of 50.8 million pounds of uranium over a 19-year period.

Repositioning in a Recovering Market

The strengthening uranium market provides crucial investment support for projects like Muntanga. As countries reassess their energy strategies, growing demand for nuclear power persists alongside elevated prices.

Spot prices hover around $85 per pound, while long-term contracts approach $90—levels widely considered favorable for initiating new projects.

Under these conditions, multiple companies—including those targeting Muntanga—are advancing projects designed to meet future demand.

Yet the situation in Niger remains markedly different. Uranium output in the country has declined sharply, with ongoing uncertainty undermining mining partnerships. According to the World Nuclear Association, Niger’s uranium production is expected to drop from 4,116 metric tons in 2015 to just 962 metric tons by 2024.

Tensions between the government and longtime partner France’s Orano—including the nationalization of the country’s last operating uranium mine—have further exacerbated the decline in output.

Even if global market conditions improve, the closure of the Madaouela mine weakens a potential driver for a recovery in Niger’s uranium production.

An Uncertain Outlook

Atomic Eagle’s progress in Zambia hinges on several critical steps. Exploration must deliver a substantial increase in resource estimates, followed by securing funding required for mine construction.

The timeline for commercial operation will depend on whether the company can successfully translate Muntanga’s geological potential into a viable mining operation.

The dispute with Niger remains unresolved. If settled, Atomic Eagle might regain control of the Madaouela project—or at least reach a clear agreement defining its legal status. Such an outcome could also pave the way for new investors, avoiding the risks associated with ongoing arbitration.

Niger still has multiple pathways to revive the Madaouela project and its broader uranium industry. The Dasa project, led by Canada’s Global Atomic, is planned to begin operations in 2027, while other potential partners—including investors from Russia and China—are exploring opportunities.

However, any recovery in output will ultimately depend on resolving outstanding disputes and bringing new mines into production.

Source: recofinagency

Original article: toutiao.com/article/1863851148495883/

Disclaimer: The views expressed in this article are solely those of the author.