Orano has filed arbitration against Niger concerning the Imouraren uranium mine and Somair. The dispute began with the revocation of a mining license and was exacerbated by operational control issues. Financial challenges have arisen due to blocked exports, compelling Orano to seek damages. The case highlights Niger’s importance in the uranium supply for Europe and its implications for France’s energy needs.
Orano, a French mining company, has initiated arbitration proceedings against Niger concerning a dispute over the Imouraren uranium mine and its operational control over the Niger mining company Somair. The arbitration was filed at the International Centre for Settlement of Investment Disputes (ICSID) on March 5, following unsuccessful mediation efforts over several months.
The conflict arose when Niger revoked Orano’s mining license for the Imouraren uranium mine on June 19, 2022, after the company proposed to expedite the exploitation of the mining deposit. Additionally, Orano lost control of Somair in December 2022, as expenses related to production activities were halted by a board resolution. This situation triggered Orano’s second submission for arbitration.
Orano has struggled to export its products for several months due to the Nigerien government blocking access, which has led to a severe financial downturn for the company. In its arbitration claims, Orano is seeking damages related to Niger’s obstruction of the commercialization of production and the suppression of its offtake rights.
The implications of this dispute extend to Niger’s significant contribution to the global nuclear power industry, supplying around 25% of uranium for European nuclear power plants. This development has critical ramifications for France, where nuclear power plants account for approximately 65% of the country’s electricity supply. Orano is represented in these proceedings by the French firm Clay Arbitration, while Canadian company GoviEx has also filed an ICSID claim against Niger this year regarding a separate mining dispute.
Orano’s arbitration against Niger underscores significant tensions regarding uranium mining operations, particularly following the revocation of its mining license and control issues over Somair. The ongoing dispute not only threatens Orano’s financial stability but also holds considerable implications for both Niger’s economy and the European nuclear power sector. The involvement of international arbitration highlights the complexities arising from resource management and operational rights in the mining industry.
Original Source: www.africanlawbusiness.com
