Australian mining group Berkeley Energia (BKY.L) has filed a request for arbitration to seek $1 billion in damages from the Spanish government. This comes after Spain refused to give final approval for Berkeley’s Retortillo uranium mine project.
The Retortillo project, Berkeley’s main asset, received preliminary approval in 2013. However, Spain’s Energy Ministry refused to approve the project located near the central city of Salamanca, first in 2021 and again in 2023.
A spokesperson for the Energy Ministry stated that the government blocked the project based on a report from the country’s Nuclear Security Council, but declined to comment further on the arbitration.
Berkeley has filed the arbitration at the World Bank’s International Centre for Settlement of Investment Disputes. The company accuses the Spanish government of infringing on its rights under the Energy Charter Treaty, an international agreement designed to promote energy security through more open and competitive energy markets.
Berkeley said it remains committed to the project and is ready to collaborate with Spain for a resolution, expressing hope for near-term discussions. The company has previously stated that the mine would require a 250-million-euro ($271.85 million) investment and would have created more than 2,500 jobs.
Shares in Berkeley rose 5.4% following the disclosure of the arbitration filing.