GoviEx Uranium Inc and the Republic of Niger have agreed to suspend arbitration proceedings over the Madaouela uranium project as they pursue negotiations. This agreement was formalized at the Mining Indaba conference in Cape Town, outlining a roadmap for discussions while acknowledging the uncertainty of achieving a final settlement.
GoviEx Uranium Inc and the Republic of Niger have come to an agreement to temporarily suspend ongoing arbitration regarding a disputed uranium project. This agreement, formalized through a letter of intent, was reached between GoviEx, its subsidiary GoviEx Niger Holdings Ltd, and the Minister of Mines of Niger at the Mining Indaba conference in Cape Town, South Africa, earlier this month.
The involved parties have developed a structured roadmap which outlines a mutually acceptable plan for negotiations. During this process, GoviEx has confirmed that the ongoing arbitration proceedings under the ICSID Convention are temporarily suspended, allowing discussions to take place within this framework. GoviEx stated, “This suspension will remain in place until a resolution is reached or until it is determined that no settlement is possible.”
While both parties have expressed a commitment to dialogue aimed at a negotiated outcome, GoviEx cautioned that there is no guarantee the negotiations will yield a binding agreement. Should they be unable to reach a conclusion, arbitration proceedings may recommence accordingly.
GoviEx considers the Madaouela project to be among the world’s largest uranium resources, boasting 100 million pounds of U3O8 in measured and indicated resources and 20 million pounds in inferred resources. Although GoviEx advanced the project to the feasibility study stage in late 2022, Niger’s government revoked its mining rights last July, prompting GoviEx to pursue the ICSID proceedings for breach of a 2007 agreement.
In addition, the Nigerien government, which underwent a coup in 2023, also pulled the operational permit of French company Orano for its Imouraren mine, leading Orano to initiate ICSID proceedings against Niger. Meanwhile, GoviEx is focused on developing its Muntanga project in Zambia, anticipating production to begin in 2028.
In conclusion, GoviEx and the Republic of Niger have reached a temporary agreement to suspend arbitration while pursuing negotiations over the Madaouela project. This roadmap outlines a collaboratively structured approach to achieve a resolution. However, uncertainties remain regarding the outcome of these negotiations, particularly following the government’s recent actions regarding mining permits. Meanwhile, GoviEx is also advancing its Muntanga project in Zambia.
Original Source: world-nuclear-news.org
