The Niger Government has revoked the mining rights of GoviEx Uranium for the Madaouela uranium project, situated in the Agadez region in the northern part of the country.
Through a letter from the Minister of Mines, the government informed GoviEx that the mining permit area is now considered a public domain.
GoviEx had been under pressure to commence mining by 3 July 2024, a deadline imposed by Niger’s military leadership, reported mining.com.
However, the company expressed concerns that the government’s move to rescind mining rights will adversely affect the economic and social progression of the region.
In a press statement, GoviEx said: “This decision to withdraw the Company’s mining rights does not follow the withdrawal procedure prescribed under the applicable mining code.
“Whilst GoviEx is committed to maintaining transparency and continuing its engagement with Government officials and stakeholders, it reserves the right to challenge the decision to withdraw the mining rights before the competent national or international jurisdictions.”
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By GlobalData
GoviEx said it has navigated the Madaouela Project through challenging market conditions and low uranium prices to reach the feasibility study stage by the end of 2022.
Over the past year, the company secured more than $200m (C$272.13m) in expressions of interest for debt financing, updated environmental assessments and initiated engineering designs.
It also commenced preliminary groundwork, including road construction and exploitation activities at the project site.
Last month, the company received a radiological certificate, which is needed prior to starting production at the mining project.
With initial capital expenditure of $343m, the project was expected to generate up to 800 jobs over its lifespan of 20 years and contribute royalties and taxes to the Nigerien Government.
