GoviEx Uranium Inc. Initiates Arbitration Against Niger Over Mining Permit Withdrawal

GoviEx Uranium Inc. has initiated arbitration against the State of Niger after the withdrawal of its mining permit for the Madouela uranium project. The company argues that Niger breached its legal obligations under a 2007 agreement. GoviEx has made significant investments and progress in the project, which they claim is vital for regional development. Despite efforts for an amicable settlement, the company is now seeking legal remedies including international arbitration.

GoviEx Uranium Inc., based in Vancouver, has initiated arbitration against the State of Niger following the withdrawal of its mining permit for the Madouela uranium project earlier this year. GoviEx, along with its wholly-owned subsidiary GoviEx Niger Holdings Ltd, is pursuing proceedings under the ICSID Convention, alleging that Niger has breached a legal agreement established in May 2007 and violated Nigerien law.

Since commencing operations in Niger in 2007, GoviEx has made significant progress on the Madouela project, advancing from exploration to the completion of a feasibility study in late 2022. The company reported that the project was ready for development despite political upheaval following the July 2023 coup d’état. Over the past year and a half, GoviEx received interest exceeding USD200 million in project financing, initiated social and environmental assessments, and progressed engineering designs and preliminary construction activities.

The initial capital expenditure for Madouela is estimated at USD343 million, with expectations of generating up to 800 jobs over two decades and substantial revenue for the Nigerien government through taxes and royalties. GoviEx expressed concerns that the revocation of its project rights would adversely affect the region’s economic and social development.

Despite efforts to amicably resolve the dispute, including attempts at local administrative recourse, GoviEx stated that the Nigerien authorities demonstrated a lack of willingness to negotiate. GoviEx maintains that they deserve reinstatement of their project rights or monetary compensation for the State’s actions, stating their commitment to legal remedies, including international arbitration, to protect their interests. They affirmed their intention to engage constructively with the State despite the ongoing arbitration proceedings.

Earlier this year, the Nigerien authorities also revoked the operating permit of Orano subsidiary Imouraren SA and assumed operational control of SOMAÏR, which runs Niger’s only active uranium mine. Meanwhile, Global Atomic continues developments at the Dasa uranium mine. Recent statements from Mining Minister Ousmane Abarchi indicated Niger’s interest in attracting Russian investments in its natural resources sector, including uranium.

The legal conflict between GoviEx Uranium Inc. and the State of Niger centers around the company’s mining permit for the Madouela uranium project, which was withdrawn under contentious circumstances. This situation reflects broader issues in Niger’s mining sector, particularly in the wake of political changes and shifts in government policy leading to the revocation of permits for other companies in the uranium industry, revealing potential instability and regulatory challenges that foreign investors may encounter in the region.

GoviEx Uranium Inc. has embarked on arbitration proceedings against the State of Niger, claiming that the withdrawal of its mining permit constitutes a breach of legal agreements. The company argues that the revocation could hamper regional economic development and has expressed a commitment to legal recourse while seeking an amicable resolution. This case highlights the growing complexities faced by foreign investors in Niger’s evolving political landscape.

Original Source: world-nuclear-news.org