France’s Orano Group has announced the filing of a second arbitration procedure against Niger at the International Centre for the Settlement of Investment Disputes (ICSID). The group intends to “protect its rights” in this way, which, according to the group, were violated after the Niger authorities in 2024 took operational control of the Somaïr uranium mining company. ICSID is also currently considering a lawsuit against Niger brought by Canadian uranium company GoviEx in December.
This is the latest in a series of developments which have impacted other uranium mining projects in Niger following the military takeover in 2023. 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 In March, the government also cancelled an agreement with the USA, after which American troops were withdrawn.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 2024, 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.
In December Orano said that the Nigerien authorities had 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.
Orano said its latest action follows an initial request for arbitration filed on 20 December 2024 against Niger concerning the withdrawal of its mining licence for the Imouraren mine.
The Imouraren project is about 80km south of Arlit and about 160km north of Agadez and, with mineral reserves of over 200,000 tU. Operating company Imouraren SA – owned 66.65% by Orano Expansion and 33.35% by Niger state interests – was awarded an operating permit to mine the deposit in 2009, but work was suspended in 2015 due to poor market conditions. Earlier in 2024, the company restarted preparatory work for the project, but the Nigerien authorities withdrew the Orano subsidiary’s operating permit.”The announcement of the withdrawal of the licence took place when Orano presented the State of Niger with a concrete, technical proposal, which would have allowed the Imouraren deposit to be exploited as quickly as possible, and after works had resumed since June 2024,” Orano said. The company has engaged law firm Clay Arbitration as its representative.
In July, the Nigerien authorities also withdrew GoviEx Uranium’s mining rights for the Madouela uranium project porompting Goviex to start proceedings against Niger under the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States.
Notwithstanding the arbitration, the companies say they remain committed to engaging constructively with Niger to resolve the dispute.
