Jan. 15 (Bloomberg) -- Niger, Africa's biggest uranium producer, said revenue from uranium mining will rise 14-fold after the West African country signed a new agreement two days ago with Areva SA.

The nuclear fuel's contribution to Niger's budget will jump to 100 billion CFA francs ($227 million) a year from 7 billion CFA francs, Ali Badjo Gamatie, special adviser to the president on mineral matters, said on national television late yesterday.

It's ``a big push forward,'' he said in the broadcast from the capital, Niamey. ``It has been very rewarding for Niger to change the terms of the last agreement.''

Niger depends on the nuclear fuel for most of its exports, shipping about 120 million CFA francs of uranium last year, according to the International Monetary Fund. Niger previously said it would seek to end its reliance on Areva, which operates the country's two uranium mines, Somair and Cominak.

Under the new agreement, Paris-based Areva, the world's largest nuclear power-plant maker, will pay 50 percent more for the uranium it gets from Niger.

Niger will be able to sell 900 metric tons of uranium on the open market each year over the next two years, Badjo Gamatie said.

Areva said Jan. 13 that it will invest more than 1 billion euros ($1.49 billion) in the untapped Imouraren deposit, possibly the world's second largest. Badjo Gamatie didn't say whether budget revenue will rise after the Imouraren mine is built.

The new mine will create 1,400 jobs, Anne Lauvergeon, Areva's chief executive officer, said on the broadcast.

Mine Investment

Areva nonvoting certificates rose as much as 2.1 percent to $725.93 euros in Paris trading, adding to their 1.2 percent gain yesterday. They traded at 720.34 euros as of 10:32 a.m. local time.

Uranium traded at $95 a pound last week for contracts of more than a year, and $89 for immediate delivery, according to TradeTech LLC, an industry pricing service. The prices represent a nine-fold increase since 2001.

Niger holds about 5 percent of the world's known uranium resources and the Imouraren mine may produce 5,000 tons, or 13 million pounds, a year, Areva said.

To contact the reporter on this story: Abdoulaye Ibbo-Daddy in Niamey, via Johannesburg at asguazzin@bloomberg.netAntony Sguazzin in Johannesburg at asguazzin@bloomberg.net

Last Updated: January 15, 2008 06:30 EST