Orano has launched international arbitration against Niger after its mining licence for the Imouraren project was revoked following unsuccessful mediation attempts. The Imouraren project, one of the world’s largest uranium reserves, was temporarily suspended in 2015 before Orano recently restarted work. The Nigerien authorities’ revocation comes on the heels of a substantial proposal from Orano and indicates regulatory challenges for foreign mining firms in the country.
Orano, the French multinational company, has initiated international arbitration against the State of Niger following the revocation of its mining licence for the Imouraren uranium project. This decision follows months where efforts for mediation and conciliation were unsuccessful. The Imouraren project boasts significant uranium reserves, estimated at over 200,000 tons, and is situated approximately 80 kilometers south of Arlit and 160 kilometers north of Agadez.
Established in 2009, Imouraren SA is the operating entity where Orano holds a 66.65% ownership, while Niger holds 33.35%. Progress on the project was halted in 2015 due to market fluctuations; however, Orano recently indicated that preparatory work had recommenced. Shortly thereafter, the Nigerien authorities unexpectedly withdrew the operating permit for its subsidiary.
According to Orano, this withdrawal occurred immediately after the company’s submission of a solid technical proposal designed to expedite the exploitation of the IMOURAREN deposit. The company has retained the legal services of the law firm Clay Arbitration to represent them in this dispute. Additionally, in July, Niger also rescinded the mining rights of Canadian firm GoviEx Uranium for its Madouela project, prompting GoviEx to pursue legal action against Niger as well.
The Imouraren project, recognized for its major uranium deposits, has been subject to regulatory challenges faced by Orano and other international mining firms operating in Niger. The country’s recent actions reflect a broader trend of increasing scrutiny over foreign mining operations. Following initial suspensions in development ten years ago due to market conditions, the revival efforts by Orano have met significant bureaucratic hurdles, raising concerns regarding the investment climate in Niger.
In summary, the withdrawal of Orano’s mining licence by Niger not only interrupts the company’s plans for the lucrative Imouraren uranium project but also highlights the ongoing regulatory challenges foreign investors face in the country. As Orano moves forward with arbitration proceedings, the situation underscores the tensions between national interests and international investments in resource extraction sectors.
Original Source: www.world-nuclear-news.org
