Berkeley Energia’s subsidiary has lodged a $1.25 billion arbitration claim against Spain, alleging treaty violations that have stalled its Salamanca uranium project. Despite the dispute, the company remains committed to dialogue and project development.
- US$1.25 billion compensation claim filed at ICSID
- Dispute centers on alleged breaches of the Energy Charter Treaty
- Claim includes detailed legal, factual, and expert evidence
- Spain has until mid to late 2026 to respond
- Berkeley remains open to constructive dialogue with Spanish authorities
Background to the Dispute
Berkeley Energia Limited’s wholly owned subsidiary, Berkeley Exploration Limited, has escalated its long-running dispute with the Spanish government by filing a substantial claim for compensation at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C. The claim, valued at US$1.25 billion, relates to alleged violations of the Energy Charter Treaty (ECT) concerning the Salamanca uranium project in Spain.
The Salamanca Project, operated through Berkeley Minera España SA, has faced regulatory and permitting challenges that Berkeley contends have unfairly hindered its development. The company argues that Spain’s actions breach multiple provisions of the ECT, which protects foreign investments in the energy sector.
Details of the Claim
The Memorial of Claim submitted to ICSID is comprehensive, including a factual background of the project and dispute, a detailed legal basis for the claim, key witness statements, and reports from independent experts covering technical, regulatory, and damages assessments. This thorough documentation underscores Berkeley’s commitment to substantiating its case.
Spain is expected to respond by July 2026, or potentially by October 2026 if jurisdictional issues are addressed separately before liability and damages. The timeline sets the stage for a protracted arbitration process that could have significant financial and regulatory implications for both parties.
Ongoing Commitment and Future Prospects
Despite the adversarial nature of the arbitration, Berkeley Energia emphasises its ongoing commitment to the Salamanca Project. The company remains open to constructive dialogue with Spanish authorities and expresses hope for an amicable resolution to the permitting impasse. This dual approach of legal action combined with openness to negotiation reflects a pragmatic strategy to safeguard its investment and advance project development.
Investors and industry watchers will be closely monitoring the arbitration’s progress and any signals from Spain regarding potential settlement or regulatory accommodation. The outcome could set a precedent for foreign investment disputes in the European energy sector, particularly in uranium mining.
Bottom Line?
Berkeley’s bold claim marks a critical juncture for the Salamanca Project, with arbitration outcomes poised to shape its future trajectory.
Questions in the middle?
- How will Spain respond to the US$1.25 billion claim and what defence will it mount?
- Could a negotiated settlement emerge before the arbitration concludes?
- What impact might this dispute have on Berkeley’s broader uranium mining ambitions?