Tuesday, 18 February 2025
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Vancouver, Canada-based GoviEx said the letter of intent signed by the company, its wholly-owned subsidiary GoviEx Niger Holdings Ltd and the Republic of Niger, represented by the Minister of Mines, formalises “constructive negotiations aimed at finding an amicable resolution” that took place on the sidelines of the 2025 Mining Indaba conference in Cape Town, South Africa, earlier this month.
The parties have agreed to a “structured roadmap” detailing a “mutually acceptable plan” for negotiaions. As part of this process, GoviEx said the companies have agreed to temporarily suspend the ongoing arbitration proceedings under the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (known as the ICSID Convention) while discussions continue within the agreed framework. “This suspension will remain in place until a resolution is reached or until it is determined that no settlement is possible,” GoviEx said.
“The Companies welcome the Republic of Niger’s resolve to engage in dialogue and remain committed to a negotiated outcome, however there is no certainty that the negotiations will result in a final binding and definitive agreement. Should the Parties be unable to reach a definitive resolution, the arbitration proceedings may resume accordingly,” it added.
With 100 million pounds of U3O8 (38,465 tU) in measured and indicated mineral resources and 20 million pounds U3O8 in inferred resources, GoviEx describes Madaouela as one of the world’s largest uranium resources. The company had advanced the project from the initial exploration phase through to the publication of a feasibility study in late 2022, and had been working towards developing the project, but the government withdrew its mining rights last July.
In January, GoviEx initiated proceedings under the ICSID Convention on the basis that Niger had breached its legal obligations under a 2007 agreement with the company and under Nigerien law.
The government – which changed following a 2023 coup d’état – also withdrew French company Orano’s operating permit for its Imouraren uranium mine last year. Orano initiated ICSID proceedings against the State of Niger over the Imouraren permit in December, and lodged a second arbitration procedure in January following its loss of operational control of SOMAÏR, the operator of the Arlit uranium mine.
GoviEx is now working to develop its mine-permitted Muntanga project in Zambia, eyeing production in 2028.
