In response to the rejection of its plans to exploit a uranium mine in Retortillo, Salamanca, by the Spanish government, Berkeley has initiated arbitration through the International Center for Settlement of Investment Disputes (ICSID), a World Bank organization. The mining company had sent a letter to the President of the Government and the Minister for the Ecological Transition over a year ago, seeking to negotiate the Salamanca project that was rejected in November 2021. However, despite giving the government three months to respond, no resolution was reached.
The decision to pursue arbitration comes after Berkeley’s efforts to engage in negotiations with the Spanish government were unsuccessful. The company estimates its investments in the Retortillo project to be around 100 million euros, with the value of the Salamanca deposit reaching nearly 500 million euros. If successful, this arbitration could result in significant costs for Spain and highlight challenges faced by international investors navigating regulatory frameworks and government decisions in foreign jurisdictions.
