Kazakhstan Revokes $54.5 Million Arbitration Award to World Wide…

Kazakhstan has overturned a $54.5 million arbitration award granted to World Wide Minerals Ltd. (WWM), a Canadian junior miner, concerning a uranium project. This marks the second annulment of the award in a dispute that has lasted over two decades, stemming from issues related to licensing and operations in Kazakhstan’s mining sector.

Kazakhstan has revoked a prior arbitral award of $54.5 million granted to World Wide Minerals Ltd. (WWM), a Canadian junior miner, concerning a discontinued uranium processing initiative. This decision represents the second annulment of the award, extending a protracted dispute that has persisted for over twenty years.

The origins of this conflict trace back to the late 1990s, when WWM invested in the uranium sector of Kazakhstan, overseeing one of the nation’s largest uranium-processing plants. WWM entered into agreements with the Kazakh government, pledging to enhance the technological capabilities of the uranium processing industry.

However, interference from Kazakh authorities—including the withdrawal of essential licenses and the introduction of bureaucratic obstacles—culminated in the suspension of WWM’s operations and the eventual seizure of its assets. In October 2019, an international arbitration tribunal determined that Kazakhstan had breached international law and the Canada-USSR Bilateral Investment Treaty, subsequently awarding WWM over $40 million in damages, which totalled more than $50 million when accounting for legal expenses.

Kazakhstan contested this ruling, and in November 2020, the English High Court invalidated the monetary findings of the arbitral award. The Court remanded issues regarding causation and loss quantification back to the tribunal for reconsideration. The recent cancellation of the award highlights the intricate challenges that foreign investors may face in Kazakhstan’s mining sector, particularly in the uranium industry.

Kazakhstan’s revocation of the $54.5 million arbitral award to WWM underscores the challenges foreign investors confront within the mining sector, especially in uranium processing. The dispute has a long history, reflecting the complexities of international arbitration and investment agreements. This situation calls for greater transparency and stability in Kazakhstan’s regulatory environment to foster foreign investment.

Original Source: www.mining.com