Canada's GoviEx Uranium's stripped of Niger mining rights

JOHANNESBURG (Reuters) - Canadian miner GoviEx Uranium said its has been stripped of its right to develop a uranium project in Niger, just weeks after the West African country revoked a mining permit held by French firm Orano SA.

GoviEx has been informed by Niger's mines ministry that it no longer holds the rights over the perimeter of the Madaouela mining permit, which is now in the public domain, the company said in a statement released on Thursday.

The company said it "reserves the right to challenge the decision to withdraw the mining rights before the competent national or international jurisdictions".

Orano said on June 20 that the Niger government, which came into power through a coup in 2023, had scrapped a mining permit for its subsidiary Imouraren. Niger possesses Africa's highest-grade uranium ores and is the world's seventh-largest uranium producer.

The radioactive metal is the most widely used fuel for nuclear energy. It is also used in treating cancer, for naval propulsion, and in nuclear weapons.

The setback for GoviEx comes as it was in the process of raising about $200 million through debt financing to fund the Madaouela project.

(Reporting by Felix Njini; editing by Jason Neely)