GoviEx Uranium Inc. has initiated arbitration against Niger following the withdrawal of its mining permit for the Madouela uranium project, claiming a violation of legal obligations. The company highlights significant investment and development in the project since its commencement in 2007, including over USD200 million in financing interest. GoviEx seeks restoration of its rights or compensation, while affirming its commitment to engage with Nigerien authorities despite pursuing legal remedies.
GoviEx Uranium Inc., based in Vancouver, has initiated arbitration proceedings against the State of Niger, asserting that the government’s recent revocation of its mining permit for the Madouela uranium project constitutes a breach of legal obligations. Acting through its subsidiary, GoviEx Niger Holdings Ltd., the company claims that the state violated the terms of a 2007 agreement and breached Nigerien law.
Established in Niger since 2007, GoviEx has made significant progress on the Madouela project, advancing it from initial exploration to a detailed feasibility study completed in late 2022. The company asserts that the project was ready for development and had gathered over USD200 million in expressions of interest for financing despite the political upheaval following the coup d’état in July 2023. The project was projected to create approximately 800 jobs throughout its 20-year lifespan, alongside generating substantial revenue for the state through taxes and royalties.
GoviEx earlier sought to resolve the dispute amicably through local channels, including attempts to engage with the Nigerien President, but claimed the government displayed a lack of willingness to negotiate. Consequently, the company is pursuing restitution of rights under the Mining Convention and considers international arbitration as an option. Notably, GoviEx affirmed, “the Companies remain committed to engaging constructively with the State to resolve the dispute.”
The broader mining landscape in Niger has seen significant changes, with another company, Orano, also having its operating permits revoked earlier this year. Recent reports indicate that Niger’s government is seeking Russian investment in its natural resources sector, including uranium.
The arbitration proceedings commenced by GoviEx Uranium Inc. stem from the government’s withdrawal of the mining permit for the Madouela uranium project, which the company views as a breach of established agreements and Nigerien law. The ICSID Convention allows international parties to seek resolution for disputes with host states, providing a framework for protecting investment rights. Given Niger’s political instability and the revocation of mining permits from other companies, the situation points to a challenging environment for foreign investments in the nation’s uranium industry.
In summary, GoviEx Uranium Inc. has taken formal steps towards arbitration following the State of Niger’s withdrawal of its mining permit for the Madouela project, citing breaches of legal obligations. The company has made substantial progress in the project prior to the permit revocation and aims to reclaim its rights or seek compensation. Despite the hosting environment’s challenges, GoviEx remains open to constructive dialogue with the Nigerien government.
Original Source: world-nuclear-news.org
