Orano has filed for arbitration against Niger at ICSID regarding disputes over the Imouraren uranium mine and Somair control. Following the revocation of its mining license and operational challenges, Orano seeks damages for commercial obstruction. This situation affects Niger’s role in global uranium supply, crucial for European nuclear power.
Orano, a French mining company, has initiated arbitration proceedings against Niger at the International Centre for Settlement of Investment Disputes (ICSID), stemming from a dispute over the Imouraren uranium mine and its control of Somair, a Niger mining company. The arbitration request was submitted on 5 March following multiple unsuccessful attempts at mediation, as stated by Orano in prior announcements made in December 2024 and January of this year.
The conflict began when Niger revoked Orano’s mining license for the Imouraren uranium mine on 19 June 2023, after the company proposed expedited exploitation of the mining deposit. This license revocation prompted Orano’s initial arbitration submission. Furthermore, in December, Orano lost operational control over Somair, disrupting its ability to manage expenses, which led to a second arbitration filing.
Due to access restrictions imposed by the Nigerien regime, Orano has faced significant challenges in exporting its products, thus exacerbating its financial difficulties. The company intends to seek damages for Niger’s obstruction of its production commercialization and infringement of its offtake rights related to uranium.
This situation has broader implications for the global nuclear power sector, with Niger supplying around 25% of the uranium used in European nuclear power plants. This development holds particular significance for France, where nuclear power generation accounts for almost 65% of its electricity needs. Orano’s legal representation in this matter is being provided by the French law firm Clay Arbitration. Additionally, Canadian company GoviEx has also filed for ICSID arbitration against Niger related to a mining dispute this January.
In summary, Orano’s arbitration against Niger is rooted in significant disputes over mining licenses and operational control, leading to a critical financial situation for the company. The dispute underscores Niger’s pivotal role in uranium supply for European nuclear energy, highlighting its global importance. Furthermore, this event reflects ongoing tensions in the mining sector, with additional international companies like GoviEx also seeking legal recourse against Niger.
Original Source: www.africanlawbusiness.com
