Orano has initiated arbitration against Niger after its mining licence for the Imouraren uranium project was revoked. The French company cites unsuccessful mediation attempts, revealing tensions in Niger’s mining sector, particularly over uranium extraction rights. Together with GoviEx’s similar disputes, this highlights ongoing challenges for foreign investments in Niger’s resource-rich landscape.
Orano, a French nuclear energy company, has initiated international arbitration proceedings against the State of Niger following the recent withdrawal of its mining licence for the Imouraren uranium project. The decision to pursue arbitration comes after several months of unsuccessful mediation efforts with Nigerien authorities. Notably, the Imouraren project is located 80 kilometers south of Arlit and is recognized for possessing one of the largest uranium reserves globally.
The operating permit for the Imouraren project was granted to Imouraren SA in 2009, with Orano holding a 66.65% stake and the Niger state holding 33.35%. However, development of the project was halted in 2015 due to unfavorable market conditions. Earlier in 2023, Orano signaled the resumption of preparatory work for the project; however, the Nigerien authorities revoked the operating permit shortly thereafter, shortly after Orano presented a proposal for rapid extraction of uranium resources.
Orano has stated that the withdrawal of the mining licence was unexpectedly executed at a critical juncture when the company had resumed activities aimed at advancing the project. The company has enlisted the law firm Clay Arbitration to represent its interests in the proceedings. Additionally, it is noteworthy that in July of this year, the Nigerien government also retracted mining rights from the Canadian firm GoviEx Uranium for a different project, the Madouela uranium project. GoviEx has likewise commenced action against Niger under international investment dispute regulations.
The Imouraren uranium project is significant due to its extensive mineral reserves, estimated at over 200,000 tonnes of uranium. Strategically located, this project was awarded an operating permit over a decade ago but has faced interruptions due to market volatility and regulatory challenges. The recent actions taken by the Nigerien government against both Orano and GoviEx Uranium highlight ongoing tensions within the mining sector in Niger, particularly around uranium extraction, a critical resource for nuclear energy.
The unfolding situation involving Orano and the State of Niger exemplifies rising tensions in the mining sector, particularly concerning uranium extraction. The company’s move for arbitration underscores its commitment to recourse following an unexpected withdrawal of its mining licence, highlighting the complexities involved in international resource contracts and governmental relations. This case, along with GoviEx’s challenges, could set precedents for future investment disputes in the region.
Original Source: www.world-nuclear-news.org
