Work has been suspended on the Tavsan gold mine in Turkey, partly owned by Ariana Resources PLC (AIM:AAU), following a court ruling.
The project is operated by Zenit Madencilik in partnership with Proccea Construction and Ozaltin Holding, and is 23.5% owned by Ariana.
A local court, the Kütahya Administrative Court, ruled in favour of a motion temporarily to suspend the construction activities of Zenit at the Tavsan mine site until a new expert report relating to the environmental impact assessment (EIA) is submitted to the court.
Various development activities which are not subject to the decision are currently expected to continue in the vicinity, including local road displacements, water pipeline construction and boundary fence installation, in accordance with all applicable requirements and regulations.
In addition, drilling activities are currently continuing at the site with over 3,715 metres completed for 35 drill holes since the commencement of the most recent programme in November 2022.
The execution of the EIA provisions will now remain suspended until a future decision is made through the local court, following the appointment of a new expert committee, the committee discovery process and the preparation of a new report for submission to the Kütahya Administrative Court.
"While this is disappointing news for the construction of our second mine at Tavsan, which will result in some delay to the completion of the mine, Zenit has determined to pursue its legal rights and to continue various development activities at the project,” said Dr Kerim Sener, managing director of Ariana.
“This situation is not at all unprecedented and several other operations have successfully progressed through similar hurdles. We will provide further updates on this matter in due course, particularly once a new expert committee is appointed. As Zenit has been funding the development of Tavsan through capital reserves and is not encumbered by debt, this delay will have no appreciable impact on our immediate financial capacity. This allows us the opportunity to deal with this situation from a position of significant strength."