Mining firm Dundee Precious Metals has won a court action against Environment and Water Affairs Minister Djevdet Chakurov ordering him to end his delay of a decision on the company's $175 million expansion project at Chelopech.

A three-member bench of the Supreme Administrative Court issued the ruling on October 24. Chakurov had 14 days from that date to lodge an appeal to a full five-member bench of the court.

The company started the process of expanding its operations at Chelopech, central Bulgaria, in December 2005, completing the environmental impact assessment (EIA) process earlier this year. The process has undergone two expert reviews by the Supreme Expert Environmental Council, winning the backing of the council. Under the Environmental Protection Act, Chakurov had until March 18 to issue a decision. Dundee went to court some time after the deadline had passed. The court said that Dundee had met all the legal and administrative requirements for the EIA, and said that Chakurov's inaction was unlawful and was a wrongful silent refusal.
Dundee chief operating officer Laurence Marsland welcomed the decision but expressed concern that Chakurov would find another way to hinder the company's plans. Chakurov unleashed controversy in July when he said that Bulgaria did not get enough out of mining operations and the contract with Dundee should be redone to ensure higher yields for the state.

Court action by Dundee against Chakurov for holding up its Krumovgrad project is pending. In September, Dundee approached the European Commission for help to get its projects underway, and officially notified the Canadian government about the problems. At the end of August, Dundee offered to pay Bulgaria a higher concession fee for the Chelopech operation. After Chakurov's July statement, Dundee said that it was considering quitting Bulgaria and investing its money elsewhere.

Soon after the Supreme Administrative Court October 24 ruling was announced, Bulgarian-language media reports said that a working group set up by the Government to draft amendments to the Subsoil Resources Act had asked the business community for input on the amendments.

The Government planned to incorporate the business community's proposals into the final version of the bill, the media reports said.

The redraft of the act is widely seen as a sequel to the clash between Chakurov and Dundee, and as linked to calls by the Bulgarian Mining Chamber for, among other things, protection for investors in the mining industry in Bulgaria against unwarranted delays by officialdom.

According to Economy and Energy Ministry officials, some types of mining permits will be granted on the principle of silent consent, where the administration does not give an official response within 14 days. This procedure will not apply where more extensive research into an application is required.

Meanwhile, an October 26 media statement said that EurOmax, another mining company that has run into problems with delays laid by Chakurov's ministry, was continuing exploration activities at its Trun project in western Bulgaria and had started diamond drilling.

"On EurOmax meeting certain expenditures on the Trun project, Teck Cominco Ltd may elect to exercise an option on the property and earn up to 70 per cent by investing up to 14.7 million Canadian dollars in a series of stages," the EurOmax statement said.