Orano has filed for arbitration against Niger at ICSID due to a dispute regarding the Imouraren uranium mine, citing financial distress linked to the revocation of its mining license and lack of operational control over Somair. The blockage of product exports by the Niger regime has worsened Orano’s financial situation, prompting claims for damages. This dispute has notable repercussions for Europe’s nuclear power supply.
Orano, a French mining company, has initiated arbitration proceedings against Niger regarding the Imouraren uranium mine and the operational control of the Somair mining company. The arbitration was filed at the International Centre for Settlement of Investment Disputes (ICSID) on March 5, following unsuccessful mediation attempts since late 2024.
The dispute arose when Niger revoked the mining license for Orano’s Imouraren uranium operations on June 19 of the previous year, shortly after Orano proposed to expedite the extraction of the mining deposit. In December, Orano also lost control of Somair, despite being the majority shareholder, as governance decisions delayed operational expenses affecting production and maintenance.
The ongoing conflict has been exacerbated by Niger’s blockage of Orano’s product exports, placing significant financial strain on the company. Orano plans to seek damages related to what it describes as Niger’s obstruction of its commercial operations and suppression of its offtake rights, resulting in severe economic consequences.
This situation carries broader implications for Niger’s role in the global nuclear industry, supplying around 25% of uranium for European nuclear power plants. This is particularly significant for France, where nuclear power generates approximately 65% of the country’s electricity. Orano is represented by the French law firm Clay Arbitration. Additionally, Canadian uranium company GoviEx has also filed for ICSID arbitration against Niger over a separate mining dispute in January.
This article outlines Orano’s arbitration filing against Niger due to the revocation of its mining license and operational challenges with Somair. The situation highlights significant financial and operational difficulties for Orano, indicating broader implications for the global nuclear power supply, especially affecting France’s electricity generation. The dispute underscores the complexities involved in international mining operations in unstable regulatory environments.
Original Source: www.africanlawbusiness.com
