Kazakhstan has annulled a $54.5 million arbitration award to World Wide Minerals Ltd. related to a uranium processing project. This decision prolongs a dispute that originated in the late 1990s, marking the second instance the award has been set aside. The case highlights the challenges foreign investors face in the Kazakh mining sector.
Kazakhstan has rescinded a $54.5 million arbitration award that was previously granted to World Wide Minerals Ltd. (WWM), a Canadian mining company, regarding a uranium processing venture that was ultimately terminated. This action signifies the second annulment of the award amidst a prolonged dispute that has continued for over twenty years.
The origins of this conflict trace back to the late 1990s, when WWM made investments in Kazakhstan’s uranium sector and managed one of the largest uranium processing facilities in the country. The agreements established between WWM and the Kazakh government outlined mutual commitments to enhance the nation’s uranium processing infrastructure.
However, subsequent regulatory measures imposed by Kazakh authorities, including the withdrawal of essential licenses and additional bureaucratic challenges, resulted in the halting of WWM’s operations and the eventual seizure of its assets.
In October 2019, an international arbitration panel ruled that Kazakhstan had violated both international law and the Canada-USSR Bilateral Investment Treaty, awarding WWM over $40 million in damages, which totaled more than $50 million when accounting for legal expenses.
Kazakhstan contested this verdict, leading the English High Court in November 2020 to nullify some aspects of the arbitral decision while returning matters regarding causation and loss quantification to the tribunal for further evaluation.
The recent annulment of the award highlights the intricate challenges foreign investors are likely to face within Kazakhstan’s mining sector, particularly in its uranium industry.
In summary, Kazakhstan’s recent revocation of the $54.5 million arbitral award to World Wide Minerals Ltd. illustrates ongoing complexities in international investment disputes, specifically in the uranium sector. This case, which has been in dispute for over two decades, underscores the difficulties that foreign investors may encounter amidst regulatory changes and legal complications.
Original Source: www.mining.com
