GoviEx Uranium Inc and Niger have temporarily suspended arbitration for the Madouela uranium project to engage in negotiations. A letter of intent was signed at the Mining Indaba conference outlining a roadmap for discussions. While both parties aim for a resolution, uncertainty about achieving a definitive agreement persists. GoviEx holds a significant uranium resource in Madouela, which has faced legal challenges following a government permit withdrawal.
GoviEx Uranium Inc, based in Vancouver, Canada, has reached an agreement with the Republic of Niger to temporarily suspend ongoing arbitration related to the Madouela uranium project while negotiatory discussions progress. This development follows the signing of a letter of intent by GoviEx, its subsidiary GoviEx Niger Holdings Ltd, and the Nigerien Minister of Mines at the 2025 Mining Indaba conference in Cape Town, South Africa.
The agreement entails the establishment of a “structured roadmap” to facilitate a mutually acceptable negotiation plan. GoviEx stated that the arbitral proceedings under the ICSID Convention will be paused during this negotiation period. The suspension shall remain in effect until a resolution is achieved or it is deemed that no settlement can be reached.
Although the parties express a commitment to dialogue for a negotiated outcome, uncertainties remain about the likelihood of reaching a final agreement. Should negotiations fail to provide a definitive resolution, the arbitration proceedings may resume.
With significant uranium resources totaling 100 million pounds of U3O8, GoviEx identifies Madouela as one of the largest uranium resources globally. Despite advancing the project to a feasibility study phase in late 2022, the Nigerien government withdrew GoviEx’s mining rights in July.
In January, GoviEx commenced ICSID proceedings, citing Niger’s breach of its obligations under a 2007 agreement and local law. The Nigerien government also revoked the operating permit of the French company Orano for its Imouraren uranium mine amidst recent governmental changes following a coup in 2023. Orano has initiated its own ICSID proceedings regarding operational control issues related to its uranium assets. Meanwhile, GoviEx aims to develop its Muntanga project in Zambia, anticipating production to begin in 2028.
In summary, GoviEx and the Republic of Niger have entered into an agreement to suspend arbitration proceedings while pursuing negotiations regarding the Madouela uranium project. The development underscores both parties’ willingness to dialogue, although uncertainties about a binding resolution remain. Given its significant uranium resources, the outcome of these negotiations is pivotal for GoviEx’s future operations and investments.
Original Source: world-nuclear-news.org
