Orano Initiates Arbitration Against Niger Over Uranium Mining Dispute

Orano has filed for arbitration against Niger over a dispute regarding the Imouraren uranium mine and control of Somair mining company. The proceedings were initiated at ICSID following failed mediation attempts after Niger revoked Orano’s mining license and obstructed its exports, placing the company’s finances in jeopardy. This dispute also raises concerns about Niger’s role in the global uranium supply, critical for European nuclear power plants.

The French mining company Orano has initiated arbitration proceedings against the Nigerien government concerning the Imouraren uranium mine dispute and its control over Niger-based Somair mining company. The formal complaint was lodged with the International Centre for Settlement of Investment Disputes (ICSID) on March 5, following unsuccessful attempts at mediation over several months, as confirmed in statements released by Orano in December 2024 and January 2025.

The conflict originated when Niger revoked Orano’s mining license for the Imouraren mine on June 19, following a proposal by the company for expedited exploitation of the uranium deposit. Additionally, Orano lost control of Somair in December, which it operated as the majority shareholder. The board’s resolution to halt production-related expenses to focus on salary payments, announced on November 12, faced deliberate obstruction, prompting further arbitration measures.

As a result of Niger’s blockade on exports, Orano has encountered significant financial difficulties, prompting the company to seek damages for what it describes as Niger’s obstructive actions concerning the commercialization of its production and suppression of its offtake rights. This dispute holds broader implications for the global nuclear sector, considering Niger contributes approximately 25% of the uranium for European nuclear power plants. This is especially critical for France, where nuclear energy constitutes about 65% of electricity generation.

Orano is currently represented by the French legal firm Clay Arbitration. It is noteworthy that in January 2025, Canadian uranium company GoviEx also filed for arbitration against Niger at ICSID over a separate mining issue.

Orano’s arbitration filing against Niger underscores significant disputes regarding uranium mining licenses and operational control within the region, further complicated by the country’s pivotal role in the global nuclear supply chain. The case reflects broader concerns regarding Niger’s regulatory practices and their impact on foreign investments. With ongoing legal proceedings, the outcome could have far-reaching effects on both companies and the energy landscape in Europe.

Original Source: www.africanlawbusiness.com