Kazakhstan has revoked a previously granted $54.5 million arbitration award to World Wide Minerals Ltd., extending a legal dispute exceeding twenty years. The conflict originated when WWM’s operations in the uranium sector were impeded by Kazakh authorities, leading to the confiscation of assets. An international tribunal had initially ruled in favor of WWM, but subsequent legal challenges have complicated the situation.
Kazakhstan has annulled a $54.5 million arbitration award previously granted to World Wide Minerals Ltd. (WWM), a Canadian junior mining company, regarding a uranium processing project that was ultimately terminated. This decision marks the second revocation of the award, extending a protracted legal dispute that has persisted for over twenty years.
The contention originated in the late 1990s, when WWM allocated resources to Kazakhstan’s uranium sector by managing one of its most significant uranium processing facilities. The company established agreements with the Kazakh government aimed at enhancing the nation’s uranium processing infrastructure.
However, the situation deteriorated when Kazakh authorities revoked essential licenses and imposed bureaucratic barriers, leading to the suspension of WWM’s operations and the confiscation of its assets. In October 2019, an international arbitration tribunal determined that Kazakhstan had violated international law and the Canada-USSR Bilateral Investment Treaty, which resulted in an award exceeding $40 million in damages, with total compensation surpassing $50 million when accounting for legal expenses.
Kazakhstan subsequently contested this ruling, leading to the English High Court’s decision in November 2020. The court annulled certain findings pertaining to the award, directing the tribunal to re-evaluate the issues of causation and loss quantification. The recent cancellation of the arbitration award highlights the complexities that foreign investors, particularly in the uranium sector, may face in Kazakhstan’s mining landscape.
In summary, Kazakhstan’s revocation of the $54.5 million award to World Wide Minerals Ltd. illustrates the ongoing challenges faced by foreign investors in the country’s mining sector. This enduring dispute, rooted in actions taken by Kazakh authorities against WWM, emphasizes the legal uncertainties that can arise in international investments, especially within the uranium industry.
Original Source: www.mining.com
