Kazakhstan has revoked a $54.5 million arbitration award to World Wide Minerals Ltd., extending a dispute that began two decades ago regarding a uranium project. The case highlights the complexities foreign investors face in Kazakhstan’s mining sector, especially in uranium. This marks the second time the award has been annulled.
Kazakhstan has annulled a $54.5 million arbitration award given to World Wide Minerals Ltd. (WWM), a Canadian junior mining company, concerning a halted uranium processing project. This decision marks the second revocation of the award, extending a dispute that has lasted for over twenty years.
The conflict stems from WWM’s investments in Kazakhstan’s uranium sector during the late 1990s, where it managed one of the nation’s largest uranium-processing facilities. The company made commitments to the Kazakh government to enhance the country’s uranium processing capabilities.
However, following actions by Kazakh authorities, such as the withdrawal of crucial licenses and the implementation of bureaucratic obstacles, WWM’s operations were suspended, leading to the confiscation of its assets.
In October 2019, an international arbitration tribunal determined that Kazakhstan violated international law and the Canada-USSR Bilateral Investment Treaty, awarding WWM over $40 million in damages, totaling more than $50 million including legal costs. Kazakhstan subsequently contested this ruling.
In November 2020, the English High Court annulled the financial components of the arbitration award, sending the issues of causation and loss quantification back to the tribunal for further analysis. The recent annulment of the award further highlights the challenges foreign investors may face within Kazakhstan’s mining industry, particularly in the uranium sector.
In summary, Kazakhstan’s revocation of the $54.5 million arbitration award to World Wide Minerals Ltd. emphasizes the protracted nature of their legal disputes, rooted in the complexities of foreign investment in Kazakhstan’s uranium industry. This situation illustrates the intricate legal environment surrounding such investments and raises concerns for future foreign engagement in the mining sector.
Original Source: www.mining.com
