France Loses Niger Uranium Mine As EU, Trump Boost Nuclear for AI

France lost a strategic uranium mine in Africa after Niger's military junta seized the reserve from Europe’s biggest nuclear producer.

The junta described the nationalization of the Somair mine as "healthier and more sustainable management" of national resources. French state-owned company Orano SA had operated the mine for 55 years.

Niger’s uranium has fueled over 30% of France's nuclear reactors, making the seizure of Somair a strategic setback for Paris. Niger ranked among the world's top 10 uranium-rich nations, with 6.2% of global reserves in 2023.

Other regional governments have pressured foreign producers to surrender a higher percentage of royalty payments. Commodities have undergone sustained price increases starting started with gold surging above $2,400 per ounce in early 2024)

In Mali, the governing junta placed Barrick Mining's Loulo-Gounkoto complex under state administration. The government halted output in January at the complex that produces 600,000 ounces of gold annually after a tax dispute. The junta claimed it had secured over €1 billion in additional revenue by renegotiating mining contracts.

This pattern of abrupt regulatory changes has weakened the influence of France and Europe in the Sahel region. Russia and Turkey have expanded their ties, driven anti-Western sentiment and military coups in Mali, Burkina Faso, and Niger.

Côte d'Ivoire and Namibia may become uranium hubs as Western mining companies reassess their presence,

US Policies Revive Uranium Market

Uranium prices have increased over 11% to $79.70 per pound in June. After bottoming on April 8, Sprott Junior Uranium ETF (URNJ) rose by 74% on renewed investor confidence and robust demand.

Washington policymakers have provided significant tailwinds. On May 23, President Donald Trump signed four executive orders invoking the Defense Production Act. This will accelerate domestic uranium production, enrichment, and fuel cycle infrastructure.

Uranium spot price per pound, Source: TradingEconomics

Trump’s executive orders aim to quadruple US nuclear power capacity from 100 GW to 400 GW by 2050. Annual uranium demand could increase from 50 million pounds to 200 million pounds U₃O₈. UxC said this is nearly double the 164 million pounds forecasted production for 2025.

AI data centers have become major energy consumers. Meta's recent 1.121 MW nuclear power deal with Constellation Energy shows the scope of such requests. This combination of industrial and geopolitical momentum is positioning uranium as a cornerstone solution for the ever-growing energy demand.

After stagnating for two decades, EIA expects the U.S. power consumption to reach record highs in 2025 and 2026. Trump’s executive order will benefit Cameco (NYSE:CCJ), Vistra (NYSE:VST), and GE Vernova (NYSE:GEV).

EU Commits €241 Billion to Nuclear Expansion

Like the US, the European Union (EU) has implemented policies to expand nuclear production.

The European Commission said EU needs €241 billion to increase nuclear capacity from 98 GW to 109 GW by 2050. This includes €205 billion for the development of new reactors and €36 billion for the life extension of existing infrastructure.

Nuclear power currently supplies 23.7% of the EU's electricity. Twelve of the EU's 27 member states operate nuclear reactors. France’s 56 reactors account for approximately 70% of the EU’s nuclear capacity.

The commission has acknowledged the risks of delay. A five-year lag in new builds could result in increased costs of €45 billion. Rapid data center expansion is already straining the power grids of EU countries and limiting the potential for AI expansion. Ireland's data centers will consume 30% of the country's electricity by 2030.

Western Europe Sees Nuclear Power Reassessed

The European Investment Bank plans to launch a €500 million pilot program for power purchase agreements, with nuclear projects. The Commission pointed out that "a combination of diverse sources of financing complemented by de-risking instruments may be the response."

Recent political shifts support this transition. Germany changed its policy after shutting down of its last three nuclear reactors in 2023. It stopped hindering the inclusion of nuclear energy in the EU’s green energy initiatives. Denmark and Spain have reevaluated their positions on nuclear energy, prompted by concerns over energy security and recent grid disruptions.

Europe has started to reassess its nuclear energy powers, seeing is crucial. Urenco Group, a uranium-enrichment company majority-owned by the Netherlands and the UK, could benefit from this market shift.

“We know that it’s a low-carbon energy source,” Belgium’s Energy Minister Mathieu Bihet said. “It’s also an abundant energy source.”

Sweden’s Viken Uranium Deposit Is European Game-Changer

The Swedish Ministry of Climate and Enterprise proposed on June 12 to lift the country’s uranium mining ban. If the parliament ratifies the proposal, uranium will be classified as a concession mineral under the Minerals Act, effective January 1, 2026.

Uranium concentration in the soil of Europe, Source: EU Joint Research Centre

The Canadian mining company District Metals Corp (DMXCF: OTCQB) would benefit from this policy change. Its Viken Property in central Sweden has 43,500 tons (95.9 million pounds) of U₃O₈. According to the company’s filings and independent assessments, this deposit represents more than 80% of Europe's known uranium resources.

The deposit includes major quantities of vanadium (312 million pounds), molybdenum (144 million pounds), and nickel (98 million pounds).

"The Swedish Government's consistent and rigorous approach toward lifting the uranium moratorium appears to be advancing… Sweden is poised to unlock its vast uranium resources for the green energy transition during a time of increasing geopolitical unrest," CEO Garrett Ainsworth said in the latest statement.

The firm has commenced an airborne MobileMT geophysical survey. It updated the Viken resource model as of April 2025, guaranteeing readiness for permitting and future production once the moratorium is lifted.

Sweden’s foray into uranium production could potentially mitigate Europe’s supply risks following disruptions in Niger and the tense relations with Russia, which accounts for over 20% of the EU’s enriched uranium supply.

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