Orano Initiates Arbitration Proceedings Against Niger Over Uranium Mining Dispute
Orano has filed for arbitration against Niger regarding the Imouraren uranium mine and Somair control due to disputes over mining licenses. Orano’s financial situation has deteriorated due to export restrictions and operational hurdles. The case is significant for Europe’s nuclear energy supply.
Orano, a French mining company, has initiated arbitration proceedings against Niger concerning the Imouraren uranium mine and its control over the Niger-based mining company Somair. This legal action was filed with the International Centre for Settlement of Investment Disputes (ICSID) on 5 March, following unsuccessful mediation attempts earlier this year and in December 2024.
The underlying issue began when Niger revoked Orano’s mining licence for the Imouraren uranium mine on 19 June of the previous year, which prompted Orano to seek arbitration. The revocation occurred after the company’s proposal to expedite the exploitation of the mining deposit was submitted to Niger’s administration.
Additionally, Orano’s control over Somair, where it is the majority shareholder, was undermined in December when the company’s board temporarily halted production-related expenses amid disputes regarding salary payments and maintenance. This situation led to Orano’s second arbitration claim against Niger.
The company faces significant financial difficulties, having been unable to export its products due to restrictions imposed by the Niger regime. Orano intends to claim damages for the hindrance of its production commercialization and the violation of its offtake rights.
This dispute holds broader implications for the global nuclear power sector, as Niger supplies approximately 25% of the uranium for European nuclear power plants. This is particularly significant for France, which derives nearly 65% of its electricity from its 18 nuclear power facilities. Orano is being represented by the French firm Clay Arbitration, while Canadian uranium company GoviEx has also pursued similar arbitration against Niger via ICSID.
In summary, Orano’s arbitration filing against Niger highlights the escalating tensions surrounding uranium mining rights and operational control in the region. The revocation of the mining license and subsequent disputes over operating authority for Somair significantly impact Orano’s financial standing and the supply of uranium essential for European nuclear power. The case underscores the importance of Niger’s uranium resources in the global energy landscape, particularly for France.
Original Source: www.africanlawbusiness.com
