Spain Requests CIADI Jurisdiction Review in $1.25 Billion Berkeley Uranium Mine Arbitration
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TL;DR
- Spain has asked the CIADI tribunal to consider its jurisdiction before proceeding in the $1.25 billion dispute with Berkeley.
- The dispute concerns Spain's halt of the Retortillo uranium mine project by Berkeley Energia.
- Berkeley argues for compensation under the Energy Charter Treaty after project permits were denied.
- The tribunal was constituted in March 2025 and both parties have submitted initial filings.
Overview
The Spanish government has formally challenged the jurisdiction of the International Centre for Settlement of Investment Disputes (CIADI) in a $1.25 billion arbitration filed by Berkeley Energia over the halted Retortillo uranium mine project. The government seeks a preliminary phase on jurisdiction, which could delay substantive hearings for months while the tribunal reviews its authority to hear the claim.
What Happened
In February, Berkeley Energia submitted its full claim to CIADI, outlining alleged damages related to Spain's blockage of the uranium project. The Spanish government, through its State Attorney, responded by requesting that the CIADI tribunal separate and first resolve the issue of its jurisdiction before considering the merits of the $1.25 billion claim.
Berkeley is preparing its reply to this procedural move, with both sides represented by experienced counsel. The three-member CIADI tribunal, presided over by Sabina Sacco with Klaus Reichert and Zachary Douglas as arbitrators, was constituted in March 2025.
The arbitration arises from Spain's 2021 decision to deny construction permits for the Retortillo mine, following a negative report from the Nuclear Safety Council, and the enactment of new climate legislation restricting uranium mining. Berkeley asserts that it had acquired rights predating the legislation and alleges arbitrary conduct by Spanish regulators.
Parallel to the CIADI dispute, Spanish courts annulled key urban permits for the project in December 2023. Berkeley had notified Spain of the dispute under the Energy Charter Treaty in late 2022; after failed settlement discussions, it registered the arbitration in May 2024. The claim amount later increased to $1.25 billion.
Context
Berkeley's Retortillo uranium mine project was halted amid environmental and regulatory concerns, with opposition from both Spanish authorities and civil society. The dispute escalated internationally after domestic remedies failed, leading to the filing under the Energy Charter Treaty at CIADI.
Similar large-scale arbitrations have been filed against Spain under the ECT on energy and regulatory matters. Berkeley maintains that it remains open to a negotiated settlement with Spanish authorities, despite the current judicial focus.
Why It Matters
- This procedural request could delay substantive hearings in one of the largest pending arbitrations against Spain.
- The decision on CIADI jurisdiction will set the timeline for resolving the dispute and clarify CIADI's competence in cases affected by national regulatory changes and evolving energy policy.