Russian shareholders of the abandoned Montagne d'Or mining project in Guyana have initiated "international arbitration proceedings" against France to obtain compensation, prompting a reaction from the Nicolas Hulot Foundation, a long-time opponent. to the project this Thursday.

“What is the justification for letting investors go before an exceptional tribunal from the point of view of the general interest?

», Commented Samuel Leré, head of advocacy with the environmental organization.

The project "not compatible" with the climate objectives

On the occasion of the first Ecological Defense Council in May 2019, the government deemed "incompatible" with the objectives set in terms of ecological transition, this Montagne d'Or industrial project, of a size never seen in France, envisaged in a forestry and mining area in western Guyana and aiming to mine at least 85 tonnes of gold by cyanidation. Montagne d'Or "is not compatible with France's priorities in the field of environmental protection and biodiversity", repeated earlier this week the Ministry of Foreign Affairs, confirming that "shareholders Russians involved in this project had initiated an international arbitration procedure based on the bilateral investment treaty in force between France and Russia ”and dating from 1989.

According to the FNH, the treaty on which Russian investors rely "does not contain any provision on environmental damage".

The Quai d'Orsay affirms in any case that "France will defend its decision and its legitimate right to regulate in the interest of protecting the environment and biodiversity within the framework of this arbitration procedure".

Almost 3.8 billion euros in compensation

The investors attacking France are the Russians Severgroup and KN-Holdings, owners of the UK-registered mining company Nordgold, said Jean-Rémi de Maistre, specialist in international arbitration procedures.

According to the specialized site IAReporter, Severgroup and KN-Holdings would claim “4.5 billion dollars” (3.8 billion euros) in compensation.

Russian steelmaker Severstal, Severgroup's main company, declined to comment.

The request for arbitration comes as the Minister of the Economy and Finance Bruno Le Maire appealed to the Council of State on points of law.

The minister opposes the obligation confirmed by the administrative court of appeal of Bordeaux on July 16, 2021 to quickly renew the mining concessions claimed since 2018, and for a period of 25 years, by the promoters of Montagne d'Or.

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