Orano Initiates Arbitration Following Withdrawal of Niger Mining Licence

Orano has initiated arbitration against Niger following the withdrawal of its mining licence for the Imouraren project, which is notable for its significant uranium reserves. The company claims this action follows prolonged mediation failures. GoviEx Uranium experienced similar issues with its mining rights, illustrating a trend of revoked licences by Nigerien authorities.

Orano, the French multinational company, has initiated international arbitration proceedings against the Nigerien government after the withdrawal of its mining licence for the Imouraren uranium project in June. This action follows months of failed mediation efforts. The Imouraren site, known for its substantial uranium reserves exceeding 200,000 tons, lies approximately 80 kilometers south of Arlit and 160 kilometers north of Agadez. Despite being awarded an operating permit in 2009, development was temporarily halted in 2015 due to unfavorable market conditions.

Earlier in 2023, Orano indicated a renewal of preparatory efforts for the project; however, shortly thereafter, the local authorities rescinded the subsidiary’s operating permit. Orano noted that this withdrawal occurred just as they presented a viable technical proposal aimed at optimizing the exploitation of the Imouraren deposit, with work having recommenced in June 2024. The company has appointed the legal firm Clay Arbitration to represent them in this matter.

Notably, the Nigerien authorities have also recently revoked mining rights from Canadian firm GoviEx Uranium concerning the Madouela uranium project. Following the withdrawal, GoviEx and its subsidiary commenced legal proceedings against Niger, citing violations of the Convention on the Settlement of Investment Disputes, which mandates state obligations regarding investment.

The Imouraren project is significant due to its vast uranium reserves, considered among the largest in the world. Initially awarded in 2009, the operational permit was put on hold in 2015 due to market challenges. This development is part of a broader trend where local governments are reassessing mining contracts, which can lead to disputes with foreign investors. Orano’s case highlights ongoing tensions in resource management and regulatory compliance within the sector.

In conclusion, Orano’s arbitration proceeding signifies a critical juncture in its operations within Niger, reflecting broader issues surrounding foreign investments in resource extraction. The actions taken by the Nigerien authorities not only impact Orano but also underline a trend, as seen with GoviEx Uranium, where mining rights are being contested. These events necessitate careful consideration of the legal frameworks governing international investments and mining operations.

Original Source: www.world-nuclear-news.org