GoviEx Uranium Inc., a Canadian company that mines in Niger, plunged after reporting that the West African nation’s military leaders withdrew its permit.

Shares of GoviEx, which has operated in Niger since 2007, crashed 35 per cent in Toronto on Thursday, the biggest drop in more than eight years. The decline came after the government sent the company a letter saying it “no longer has the rights over the perimeter of the Madaouela mining permit.”

The revocation of GoviEx’s permit follows the Nigerien junta’s decision last month to scrap French nuclear group Orano SA’s right to develop the Imouraren uranium mine. 

Niger has forged closer ties with Russia since a coup in the African nation last year, paving the way for Moscow to seek access to mining interests in the country. Niger accounted for about four per cent of global uranium mine production in 2022. 

Demand for the radioactive metal is picking up as China develops nuclear energy at a rapid pace, while European countries including France prepare to build new atomic plants as part of their strategies to cut carbon emissions. Prices have jumped because of production issues in countries including Kazakhstan.

“With the recent recovery in uranium prices, the Madaouela project was poised for development and the company had started to advance despite the political changes in Niger since the coup,” GoviEx said. The decision “does not follow the withdrawal procedure prescribed under the applicable mining code,” it said.

One of the world’s poorest countries, Niger expelled French forces last year and ended a decade-long security agreement with the U.S., which has until mid-September to withdraw its troops stationed in the country. 

In April, 100 Russian military instructors arrived in the capital, Niamey, to train Nigerien forces on how to use air-defense systems supplied by Moscow.