GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) is seeking reinstatement of its mining rights or monetary compensation through arbitration in Niger.
The company and its subsidiary GoviEx Niger Holdings Ltd have launched arbitration proceedings against the Republic of Niger, alleging breaches of their mining rights under the country’s mining laws and a 2007 Mining Convention.
The arbitration follows the Niger government’s withdrawal of GoviEx's mining permit for the Madaouéla uranium project in July.
GoviEx argues that these actions violate Nigerien law, claiming the state failed to uphold its obligations and acted in bad faith.
The Madaouéla project, which GoviEx says was advancing despite political instability in Niger following a July 2023 coup, had garnered over $200 million in debt financing interest. The project’s initial capital expenditure was estimated at $343 million, with the potential to generate up to 800 jobs and contribute substantial royalties and taxes over a 20-year mine life.
In preparation for development, GoviEx had undertaken environmental and social assessments, front-end engineering designs, and initial groundwork, including road construction. The company contends the loss of the project will negatively affect the region's economic and social development.
GoviEx said it attempted to resolve the matter amicably, including filing a local administrative appeal with Niger’s president. However, it claimed the state was unwilling to engage in settlement discussions.
Additional legal remedies, including international arbitration under a 2019 memorandum of understanding with Niger, remain under consideration, GoviEx said.
The firm added that it is hoping to “constructively” engage with the state to resolve the disagreement.