Niger+Infrastructure+Projects

=China's SINO-U and CNPC Highly Likely to Keep Aiding Niger Through Loans, Exempting Debt, and Infrastructural Projects Related to Travel and Uranium Mines=

Executive Summary:
China is highly likely to keep aiding Niger, mainly through loans, exempting debt to China, and infrastructure projects relating to travel, oil, and uranium mines. Chinese infrastructure projects are likely to correspond to PNGSM investments and are used to further pursue these investments in Niger. The key companies executing infrastructure projects are China's state owned uranium firm (SINO-U), China National Petroleum Corporation (CNPC), and China Railway Group Co. SINO-U invested USD 300 million in the Somina uranium mine, at Azelik near Agadez, and also extended a USD 95 million loan to Niger to support the project. The Somina mine will increase up to 700 tU/yr. It is an open pit and underground operation using alkaline leach. It is reported to have resources of 15,600 ton of uranium at 0.2 percent. SINO-U says it hopes to raise production to 2500 ton a year by 2015 and double that by 2020. CNPC signed a USD 5 billion USD joint-venture agreement with the Nigerien government for exploration of the Agadem block. This includes a USD 1 billion to construct a 20,000 barrels a day Soraz refinery near Zinder and USD 2 billion for an export pipeline.

Discussion:[[image:ngaafricaproject/Screen shot 2013-11-12 at 5.31.07 PM.png align="right" caption="Niger Key Resource Locations. Source: http://tinyurl.com/l8oqxc9"]]
China's state-owned uranium firm, SINO-U, will invest USD 300 million in the Somina uranium mine, at Azelik near Agadez. The joint-venture, known as Niger Azelik Mining Industry, is co-owned by SINO-U (37.2 percent), the Nigerien Government (33 percent), ZXJOY Invest (24.8 percent), Korea Resources (4 percent), and Trendfield Energy and Resources (1 percent). In addition to the uranium mine, the complex will include two coal-fired power plants and a hydrometallurgy plant. The mine will produce around 700 tons per year, China also extended a USD 95 million loan to Niger to support the project. Chinese uranium mining interests also revamped Niger's power supply. China will transfer electrical power units to Niger's head of power plant in capital Niamey. Mr Hamidu Mamudu, said the new equipment would help increase production of electric power by about 30 percent for the Niamey region saying equipment will also increase power output between 50 and 60 megawatts.

On June 2, 2008, CNPC signed a USD 5 billion joint venture agreement with the Nigerien government for exploration of the Agadem block. This includes USD 1 billion USD to construct a 20,000 barrels per day Soraz refinery, which is near Zinder, and USD 2 billion for a 287 miles of export pipeline. Before more substantial reserves are proven, CNPC will only invest 600 million USD, half of which is a signature bonus. On October 8, 2011, the crude oil pipeline began operations. The pipeline starts in the Goumeri station of the Agedem oilfield and ends at the Zinder refinery.

Ganaram || China EXIM Bank, China Geo-Engineering Corp. || Construction of production facilities in the North Ganaram wellfield to improve drinking water supply in the city of Zinder || Misc. ||
 * **Date:** || **Price (USD):** || **Location:** || **Key Chinese Companies Involved:** || **Description:** || **Corresponds To:** ||
 * 2011 || 2 million || Niamey || China Geo-Engineering Corp. || Fund the construction of two, 10 classroom schools || Misc. ||
 * 2011 || 36 million || North
 * 2012 || 25 million || Niamey || China EXIM Bank || Build a national referral hospital || Misc. ||

** Analytic Confidence: **
Analytic confidence for this assessment is medium. Source reliability is medium. Information on this subject was not always transparent. The analyst had low expertise, worked alone while collaborating in a group, and did not use structured analytic methods. The subject is moderately complex and the deadline was moderately difficult to meet.
 * Analyst:** RoseAnna Wright