28th May 2024 14:40
(Alliance News) - Berkeley Energia Ltd on Tuesday launched arbitration proceedings against Spain through its Spanish subsidiary after being denied approval for its flagship uranium project.
The Spain-focused clean energy company, which is developing the Salamanca uranium project, is seeking USD1.00 billion in compensation.
In November 2021, the company's application to build a uranium concentrate plant in western Spain was blocked by the Spanish Ministry for Ecological Transition, due to concerns regarding the storage of radioactive waste at the facility.
In 2022, after refuting the ministry's assessment, the company submitted a notification of an investment dispute to the Spanish prime minister, citing potential breaches of the Energy Charter Treaty.
Berkeley said it viewed the assessment as discriminatory and arbitrary, and to date, the company is yet to engage in any discussions with the Spanish government relating to the ongoing dispute.
The charter, which aims to encourage energy cooperation between signatories, allows companies to sue governments if their policies result in lost profit.
Berkeley remains committed to the project and has filed a request to enforce its rights to Salamanca through the International Centre for Settlement of Investment Disputes.
The company will prepare for the next phase of proceedings, which will see the formal establishment of a tribunal.
Berkeley Energia shares jumped 13% to 23.00 pence each in London on Tuesday afternoon.
By Elijah Dale, Alliance News reporter
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