GoviEx Uranium Inc. has begun arbitration proceedings against the State of Niger for withdrawing its mining permit for the Madouela uranium project, alleging breach of contractual obligations. Despite the State’s actions, GoviEx is committed to exploring opportunities for constructive dialogue while seeking legal remedies to address its claims.
GoviEx Uranium Inc., based in Vancouver, has initiated arbitration proceedings in response to the State of Niger’s withdrawal of its mining permit for the Madouela uranium project. The company claims this action constitutes a breach of Niger’s legal obligations under a May 2007 agreement and Nigerien law. GoviEx and its wholly-owned subsidiary, GoviEx Niger Holdings Ltd, are invoking the ICSID Convention to seek legal redress for the alleged infringement of their rights.
Since commencing operations in Niger in 2007, GoviEx has progressed the Madouela project through various phases, culminating in the completion of a feasibility study in late 2022. The project is positioned for development, with substantial interest exceeding USD200 million in related financing, despite political instability following the July 2023 coup d’état in Niger. The project, which requires an estimated initial capital investment of USD343 million, is projected to create up to 800 jobs and generate significant tax revenues and royalties for the Nigerien government.
GoviEx emphasized its belief that the revocation of its rights will adversely affect the economic and social landscape of the region. The company expressed its attempts to amicably resolve the dispute with the Nigerien authorities, including engaging in local administrative recourse. However, they reported a lack of cooperation from the State and are pursuing additional remedies through international arbitration as necessary. Notably, GoviEx reaffirmed its commitment to constructive engagement with the State despite pursuing arbitration.
Recent developments indicate that Nigerien authorities have also revoked mining permits from other companies, reflecting a broader trend in the region’s mining governance. The situation within the uranium sector remains complex as Niger seeks to attract foreign investment, particularly from Russia, in its natural resources.
The arbitration proceedings initiated by GoviEx Uranium Inc. arise from the company’s claim that the State of Niger violated its obligations under an agreement specific to the Madouela uranium project. This conflict is occurring amid Niger’s shifting political landscape following a recent coup, which has led to increased scrutiny and regulatory actions by the State against foreign companies operating in the region, including revocations of permits from other mining operations.
In summary, GoviEx Uranium Inc. has commenced arbitration against the State of Niger following the withdrawal of its mining permit, claiming a breach of legal obligations. The company has substantial financial commitments to the project and asserts that the actions taken by Niger will negatively impact regional development. GoviEx’s commitment to constructive discussions with the Nigerien government remains despite this legal course of action, reflecting the ongoing complexities within the mining sector in Niger.
Original Source: world-nuclear-news.org
