The cost of the reintegration exercise, dubbed "Air and Azawak" in a reference to the two zones affected by the conflict, is estimated at 850 million CFA francs (1.6 million dollars, 1.3 million euros), Tandja told reporters on the 11th anniversary of the end of the conflict.

In 1995, some 3,160 Tuareg ex-combatants were demobilised and confined to several sites in the north of the country, where they survived on international aid.

Since then they have awaited reintegration into normal life, in line with a peace deal concluded on April 24, 1995 that put an end to hostilities which started in 1991.

The new funds will enable them to set up cooperatives in arts and crafts, livestock breeding and farming, according to an independent commission for the restoration of peace, responsible for following up the peace agreements.

France, Libya, the United Nations and the United States are among a host of international backers funding the programme to ensure peace in the north of the west African country.

Uranium and oil are found in northern Niger, the centre of an armed rebellion by young Tuaregs, who form the majority ethnic group in the region and seek greater regional autonomy and increased economic opportunities.

Since the end of the hostilities, April 24 has been declared a national day of harmony.

In spite of the official end of the Tuareg conflict, the north of the country is still prey to insecurity attributed to remnants of the former rebellion.