Kazakhstan has annulled a $54.5 million arbitral award to World Wide Minerals Ltd. related to a uranium processing project, marking the second such revocation in a dispute that has lasted over twenty years. The ongoing conflict stems from Kazakhstan’s actions that hindered WWM’s operations and culminated in asset confiscation. The case highlights challenges for foreign investors in Kazakhstan’s mining sector, particularly regarding legal protections.
Kazakhstan has revoked a previous arbitration award of $54.5 million that was granted to World Wide Minerals Ltd. (WWM), a Canadian junior mining company. This decision marks the second annulment of the award, prolonging a dispute that has persisted for more than twenty years, rooted in the company’s early investments in Kazakhstan’s uranium industry during the late 1990s.
WWM had managed one of the largest uranium-processing facilities in Kazakhstan, entering agreements to enhance the nation’s uranium processing operations. However, subsequent actions by Kazakh authorities, including the withdrawal of essential licenses and bureaucratic impediments, led to the halting of WWM’s operations and the expropriation of its assets.
In 2019, an international arbitration tribunal found that Kazakhstan had breached international law and the Canada-USSR Bilateral Investment Treaty, awarding WWM damages exceeding $40 million. When legal costs are included, total compensation surpassed $50 million. However, Kazakhstan contested this ruling, and in November 2020, the English High Court nullified the quantum findings but sent the issues back to the tribunal for further evaluation.
The latest annulment of the arbitration award highlights the challenges faced by foreign investors in Kazakhstan’s mining sector, particularly in the uranium industry, raising concerns about the business climate and legal protections for international enterprises in the region.
The revocation of the $54.5 million arbitration award to World Wide Minerals Ltd. underscores the ongoing complexities and disputes foreign investors encounter in Kazakhstan’s mining sector. The prolonged legal battle reflects not only the tensions between international business interests and local governance but also the potential risks involved in foreign investments in the region.
Original Source: www.mining.com
