(Alliance News) - Berkeley Energia Ltd on Wednesday said it had commenced international arbitration against the Government of Spain concerning a licencing dispute over its flagship Salamanca uranium project.
In November 2021, the company's application to build a uranium concentrate plant in western Spain was denied by the Spanish Ministry for Ecological Transition, which cited concerns over the storage of radioactive waste at the facility.
In 2022, the company submitted a notification of an investment dispute to the Spanish prime minister, informing them of potential breaches of the Energy Charter Treaty.
This treaty, aimed at fostering energy cooperation between signatory countries, allows companies to sue national governments should their energy policies result in lost profits.
In December, appeals to revoke Berkeley's permits for the project were upheld by the High Court of Justice in Castilla y Leon, the northwestern region in which the project would be built.
Berkeley said that it will now refer its case against the Spanish government to international arbitration through the International Centre for Settlement of Investment Disputes, an institution designed for dispute resolution between companies and states.
"The Spanish government has not engaged in any discussions related to the dispute and Berkeley has had no option but to take action and enforce its rights at the Salamanca project through international arbitration", the company said.
"Berkeley is ready to collaborate with the relevant Spanish authorities to find an amicable resolution to the permitting situation, and remains hopeful discussions can take place in the near term."
Shares in Berkeley Energia were down 1.2% at 15.08 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
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Berkeley Eng (BKY)