Canada’s GoviEx Uranium is initiating arbitration proceedings under the World Bank’s Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (the ICSID Convention) which Niger ratified in 1966. In July, Niger revoked GoviEx’s licence to develop the Madaouela mine, one of the world’s largest uranium projects. The Niger Council of Ministers also issued three decrees withdrawing the mining permit and abrogating the decrees granting the permit.
GoviEx had been concerned that its licence might be revoked if mining could not start by 3 July – the deadline set by Niger’s military leaders who came to power in July 2023. The government of Niger holds a 20% stake in Comima SA, the Nigerien company set up to develop the Madaouela project.
A GoviEx press release said that the licence withdrawal “does not follow the procedure prescribed under the applicable mining code” in Niger, and that it reserves the right to challenge the decision before the competent national or international jurisdictions. GoviEx added that it believes the government’s decision to withdraw the mining rights for the Madaouela project will have a negative impact on the economic and social development of the region.
This is just the latest in a series of developments which have impacted other uranium mining projects in Niger following the military takeover. French military troops were expelled from Niger in December 2023 after which relations with France rapidly deteriorated. In March, the government also cancelled an agreement with the USA, after which American troops were withdrawn.
In January, Niger temporarily suspended the granting of new mining licences and also ordered an audit of the sector. In June, France’s Orano had its permit for the Imouraren project revoked. That project, also containing one of the world’s largest reserves, had its permit awarded in 2009 but has been put on hold by the company pending favourable market conditions.
Earlier in December Orano said that the Nigerien authorities have taken operational control of the Somaïr uranium mining company in which it is the majority shareholder and operator. A Somaïr Board of Directors meeting in November had failed to resolve growing tensions between shareholders – France’s Orano (63.4%) and Niger state company Sopamin (36.6%). Niger’s military government had disputed a decision by Orano in October to cease uranium production at the Somaïr uranium mine. Orano announced that it was stopping production in face of increasingly difficult operating conditions and financial issues.
Niger is the world’s seventh largest producer of uranium and has the highest-grade ores on the African continent. It accounts for 4.7% of the world’s natural uranium production. In 2022, Niger provided more than a quarter of the uranium used in the European Union, the second biggest supplier after Kazakhstan, according to Euratom. France has depended on Niger for up to 15% of its uranium needs.
