Turkish court halts development at Inmet's Cerattepe project

An administrative court in Turkey has granted an injuntion against further development work at the Cerattepe copper project, owned by Canada's Inmet Mining, the firm said on Wednesday.

The injunction was granted after two nongovernmental organisations applied to the court to cancel the project's operating licence, based on claims that government authorities inappropriately exempted the project from environmental assessment regulations when issuing the licence.

The Turkish Ministry of Energy and Natural Resources was expected to appeal the injunction, and Inmet's local subsidiary, Artvin Bakir Maden Isletmeleri (ABMI), was “ co-operating with the Ministry in connection with such appeal”.

Toronto-based Inmet said that a ruling on the appeal was expected next month.

If the appeal was successful, ABMI would be able to resume development activities at the project until the final decision on the applications to revoke the Cerattepe licence, which was expected by the end of the year.

The Ministry was the main defendant in the case brought by the NGOs, but ABMI was named as a codefendant.

“Although we are disappointed with the decision to grant an injunction, we will continue with our efforts concerning the Cerattepe project,” the company said.

The Cerattepe copper mine was expected to start production in 2009, but the project's schedule could be delayed if the appeal against the injunction is unsuccesful, or if the court rules the licenses should be canceled.

Inmet shares were trading 1,03% down for the day, at C$76,84 apiece, by 12:56 in Toronto.

KISLADAG REOPENED

Fellow Canadian miner Eldorado Gold, which has also been challenged on the environmental impact of its presence in Turkey, finally reopened its Kisladag gold mine, in the west of the country, this month after receiving the go ahead from government.

Kisladag began producing in 2006, but was temporarily closed by a high court injunction on August 18, 2007, pending a decision on the environmental-impact assessment (EIA) approval.

However, a Turkish high court ruled last month that it did not have enough information to make a decision on a case brought against Kisladag's environmental permit, which means that the case would return to the lower courts.