GoviEx Uranium Inc. and Niger have agreed to suspend arbitration regarding the Madouela uranium project while negotiating a resolution. The letter of intent was signed during the Mining Indaba conference, outlining a structured roadmap for discussions. If negotiations do not yield a resolution, arbitration may resume. GoviEx is also advancing its Muntanga project in Zambia.
GoviEx Uranium Inc., based in Vancouver, has reached an agreement with the Republic of Niger to temporarily suspend arbitration proceedings related to the Madouela uranium project. This agreement was formalized through a letter of intent signed by GoviEx and its subsidiary, GoviEx Niger Holdings Ltd., alongside Niger’s Minister of Mines during the Mining Indaba conference in Cape Town earlier this month.
The agreement outlines a structured roadmap for negotiations aiming for a mutually acceptable resolution of the dispute. GoviEx stated that this suspension of the ongoing arbitration under the International Centre for Settlement of Investment Disputes (ICSID) will remain effective until a resolution is achieved or deemed unattainable.
GoviEx expressed appreciation for Niger’s commitment to dialogue, while also noting the uncertain outcome of these negotiations. If a definitive settlement cannot be reached, the arbitration proceedings may be reinstated. The Madouela project is recognized as one of the largest uranium resources globally, with significant measured and indicated mineral resources, alongside inferred resources, which GoviEx had been progressing before the government retracted its mining rights last July.
In January 2023, GoviEx initiated ICSID proceedings, asserting that Niger had violated a legal agreement established in 2007. The political landscape has altered in Niger following a coup d’état in the same year, which has also affected other companies, including Orano, that faced similar challenges regarding their operating permits for uranium mines in the country.
In summary, GoviEx Uranium Inc. and the Republic of Niger have mutually agreed to suspend arbitration on the Madouela uranium project, providing a framework for negotiations to occur. This collaboration reflects a commitment to amicable discussions, although uncertainties persist regarding the outcome. Should negotiations fail, the arbitration process may continue. As GoviEx progresses with its Muntanga project in Zambia, the outcome in Niger could significantly impact its strategic direction.
Original Source: world-nuclear-news.org
