Berkeley to take uranium mine dispute with Spain to arbitration
10/04/2024 15:05
MADRID, April 10 (Reuters) - Australian mining group
Berkeley Energia BKY.L BKY.MC will take its dispute with
Spain to international arbitration after the country refused to
give final approval to a uranium mine near the city of
Salamanca, the company said on Wednesday.
The Retortillo project, Berkeley's main asset, received
preliminary approval in 2013 but has since run into hurdles,
including opposition from nearby communities and safety concerns
from regulatory authorities.
Berkeley had estimated investment in excess of 250 million
euros ($269 million) and more than 2,500 jobs in the region.
Spain's Energy Ministry refused to approve the project in
2021, citing a negative opinion issued by the Nuclear Safety
Council highlighting "poor reliability and high uncertainty of
the safety analyses of the radioactive site".
It upheld the refusal in February 2023 after the
London-listed Berkeley appealed.
The company said in a filing to the Spanish stock market
supervisor CNMV that specialist teams Herbert Smith Freehills
Spain LLP and LCS Abogados will jointly prepare and submit a
"request for arbitration" to the World Bank's International
Centre for Settlement of Investment Disputes (ICSID).
"Notwithstanding the investment dispute, Berkeley remains
committed to the Salamanca project and continues to be open to a
constructive dialogue with Spain" to find an amicable
resolution, it said.
The Energy Ministry declined to comment.
Berkeley shares rose 17% in Madrid and 11% in London on
Wednesday.
The company has said the rejection infringed on its rights
under an international agreement known as the Energy Charter
Treaty, designed to promote energy security through the
operation of more open and competitive energy markets.
($1 = 0.9289 euros)
(Reporting by Emma Pinedo; Editing by Andrei Khalip and Jan
Harvey)
((emma.pinedo@thomsonreuters.com; +918 35 68 34;))