Kazakhstan has revoked a $54.5 million arbitration award to Canadian company World Wide Minerals Ltd. (WWM) concerning a uranium processing project. This marks the second annulment of the award amid a dispute lasting over two decades, originating from WWM’s investments and subsequent operational challenges in Kazakhstan’s uranium industry.
Kazakhstan has annulled a previously granted arbitration award of $54.5 million to World Wide Minerals Ltd. (WWM), a Canadian junior mining company. This revocation marks the second time the award has been invalidated, extending an ongoing dispute that has lasted over twenty years, originating from WWM’s investment in Kazakhstan’s uranium sector in the late 1990s.
The conflict began when WWM established operations at one of Kazakhstan’s largest uranium-processing facilities. Despite initial agreements with the Kazakh government for modernization efforts, WWM faced challenges including the withdrawal of essential licenses and the bureaucratic impediments instituted by authorities, eventually resulting in the confiscation of its assets.
An international arbitration tribunal in October 2019 determined Kazakhstan violated international law and the Canada-USSR Bilateral Investment Treaty, awarding WWM significant damages exceeding $50 million including legal costs. Nevertheless, Kazakhstan contested this ruling.
In November 2020, the English High Court annulled certain aspects of the arbitral award, specifically regarding damage quantification, sending these matters back to the tribunal for further evaluation. The recent revocation of the award highlights ongoing challenges faced by foreign investors in Kazakhstan’s mining sector, particularly within the uranium industry.
In summary, Kazakhstan’s decision to revoke the $54.5 million arbitration award to WWM underscores the complex and often contentious relationship between foreign investors and the Kazakh government. This protracted legal battle reflects larger issues regarding investment security and regulatory stability within the uranium mining sector in Kazakhstan.
Original Source: www.mining.com
