(Ecofin Agency) - Despite recent tensions between Niger and the US, the development of the Dasa uranium mine in Niger can still count on American support. The future mine’s output is part of the global supply for nuclear power plants, particularly in Canada and the USA.

Global Atomic, the Canadian company behind the Dasa project, expects to obtain approval by July 2024 from the credit committee of a U.S. development bank for a $295 million financing facility. In a statement dated June 17, Global Atomic noted that the bank’s Board of Directors would proceed to the move’s final review next September. 

The facility will cover 60% of the project's financing and 50% of any cost overruns. The initial capital required for the project is estimated at $424.6 million, according to a 2024 study.

Global Atomic President and CEO, Stephen G. Roman commented: "We are excited with the prospect of partnering with the U.S development bank. We believe the U.S. Government recognizes the significance of the Dasa Project and its meaningful contribution to global uranium supply diversification."

The remaining funds will be sourced from various financing proposals from financial institutions, private equity firms, or customers interested in future uranium delivery contracts. The latter could pay upfront for the uranium, while other interested parties propose to invest, either directly in a joint venture that will operate the mine or indirectly by acquiring a stake in Global Atomic. The company has not yet decided on these proposals.

The State of Niger holds 20% of the Daka project, which can deliver 68.1 million pounds of uranium over 23 years. Commissioning of the uranium ore processing plant is scheduled for the first quarter of 2026.

Emiliano Tossou