Thursday, 12 December 2024
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GoviEx Uranium Inc and its fully owned subsidiary GoviEx Niger Holdings Ltd have started proceedings under the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (known as the ICSID Convention), on the basis that Niger has breached its obligations under a May 2007 agreement between the state and GoviEx Niger, and under Nigerien law.
GoviEx began operations in Niger in 2007, and has advanced Madaouela from the initial exploration phase, through to the publication of a feasibility study in late 2022. The company said the project had been “poised for development” and had started to advance despite the political changes in Niger since the coup d’état of July 2023. Over the last year and a half, it has received expressions of interest in excess of USD200 million for project-related debt finance, started social and environmental due diligence with a prospective lender, updated the Environmental and Social Impact Assessment, and started front-end engineering designs and initial ground works, including the construction of an access road.
With a forecast initial capital expenditure of USD343 million, the Madouela project was forecast to create up to 800 jobs over its projected 20-year mine life, with substantial royalty payments and taxes payable to the state. The companies said they believe the withdrawal of GoviEx’s rights to the project will have a negative impact on the economic and social development of the region.
“While the Companies have attempted to settle their dispute with the State amicably, including through initiating a local administrative recourse before the Niger President of the Republic, the State has shown no willingness to engage with the Companies to reach an amicable settlement,” GoviEx said. “The Companies strongly believe that they are entitled to be reinstated in their rights to the Project and/or be awarded monetary compensation as a result of the State’s conduct in relation to the Project and are accordingly pursuing a legal remedy under the Mining Convention to safeguard their rights,” adding that they may pursue “other available remedies, including international arbitration” as required.
“Notwithstanding the commencement of this Arbitration, the Companies remain committed to engaging constructively with the State to resolve the dispute,” it added.
Earlier this year, the Nigerien authorities also revoked the operating permit held by Orano subsidiary Imouraren SA for the Imouraren project. More recently, the French company confirmed that Nigerien authorities have taken operational control of SOMAÏR, its subsidiary which operates the Arlit mine – currently Niger’s only operational uranium mine. Global Atomic’s development of the Dasa uranium mine is continuing. In November, Mining Minister Ousmane Abarchi reportedly said that Niger was actively seeking to attract Russian investment in natural resources including uranium.
