Dundee Precious Metals is winning the battles, but it remains uncertain whether it will win the war.
On November 1, the Canadian-owned gold and copper mining company was given another favourable ruling by a Bulgarian court in the companys quest to go ahead with its planned projects.
A five-member bench of the Supreme Administrative Court upheld an application by Dundee against a ruling by a three-member bench of the same court on July 10 this year, that declined to rule on an application against Chakurovs silent refusal to act on an application by Dundee for permission to proceed with its $75 million Krumovgrad expansion project.
In a media statement on November 2, Dundee president and chief executive Jonathan Goodman said: We are encouraged by the (courts) decision and will continue our efforts to advance our projects in Bulgaria in the shortest possible timeframe.
In a separate court action launched by Dundee, a three-member bench of the Supreme Administrative Court issued a ruling on October 24 ordering Chakurov to end his delay in deciding on Dundees $175 million expansion project at Chelopech in central Bulgaria. By law, Chakurov was meant to have issued a decision on the Chelopech project by March. But on November 3, Chakurov lodged an appeal against the October 24 ruling.
In the Krumovgrad case, Dundee had claimed that the non-rendering of a resolution on the environmental impact assessment by Chakurovs ministry within three months of the public hearings was considered a silent refusal and directly infringed on the rights of the company. Dundee asked the court to revoke the ministrys silent refusal and to approve the environmental impact assessment or, alternatively, to instruct the ministry to address the matter appropriately in compliance with Bulgarian law.
According to the Dundee November 2 statement, the Supreme Administrative Court ruling confirmed that the Environment Protection Act obliges the minister to decide on the environmental impact assessment in relation to the investment project within a three month period, as specified in the legislation, and confirmed that Dundee had a valid case.
However, what will ensue now is an open question. The five-member bench has ordered the three-member bench to hear the application and issue a decision. Whatever ruling the three-member bench issues will be subject to appeal. Even if Chakurov is ordered to issue a decision, he could announce that he has decided against the project, with the likely sequel being further court action.
At the core of the continuing series of disputes is the fact that Chakurov wants concession deals with mining companies operating in Bulgaria revised. He has said that these deals do not suit national interests. Reportedly, about 400 mining industry permits are being held up, while Chakurov continues to argue publicly that the state should be paid higher concession fees. In parallel with Chakurovs inaction on issuing decisions on applications, some environmental groups have objected to mining projects by Dundee and another company, EurOMax.
Dundee Precious Metals, a Canadian based, international mining company engaged in the acquisition, exploration, development and mining of precious metals, has said that it could consider shifting its investments out of Bulgaria.
