Spain sticks with decision to block Berkeley's uranium mine (updated)

Berkeley Energia

07/02/2023 16:35

(Adds details, share price and background)
       MADRID, Feb 7 (Reuters) - The Spanish Energy Ministry
has upheld its refusal to authorise the construction of a
uranium mine near the western city of Salamanca by London-listed
Berkeley Energia  BKY.L , sending its shares down 16%.
    Berkeley said on Tuesday it was prepared to collaborate with
Spanish authorities and remained hopeful the dispute could be
resolved amicably through negotiations, rather than via
international arbitration it would have to seek otherwise.
    Berkeley had appealed against an initial rejection by the
ministry, and alleged the government had not followed "legally
established procedure." But its appeal was rejected, Berkeley
said.
    Berkeley said it also believes the rejection is not legal as
it 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.
    The Retortillo uranium project in the Salamanca region,
Berkeley's main asset, received a preliminary approval in 2013
but has run into several hurdles since then, including
opposition from nearby communities and safety concerns by
regulatory authorities.
    The company had said the mine would run for 14 years,
generating investment of over 250 million euros ($297
million)and more than 2,500 jobs in the region.      
 (Reporting by Inti Landauro, editing by Andrei Khalip and Jane
Merriman)
 ((Inti.Landauro@thomsonreuters.com;))