Operations at Venture Minerals’ Riley Project in northwest Tasmania have been suspended with the company blaming on-going court appeals for the decision.
A statement released by the company said, “After receiving full approvals for the Riley DSO Project in mid-2013 and having secured financing, including an iron ore hedge facility at a time of higher iron ore prices, Venture was well placed to fully underwrite the life of the project. It is therefore with regret that on-going appeals have delayed the Project and in turn deprived shareholders and the local Tasmanian community of this opportunity in the medium term.”
Jeremy Kouw, CEO of Tasmanian Minerals and Energy Council, said he was extremely disappointed at the news.
“Ironically if the mining activity at Riley had proceeded after the initial approval for the project last year, it would now be in operation employing over 60 Tasmanians and putting 40 million dollars per
annum directly into the Tasmanian economy for the next two and a half years, ” Mr Kouw said.
“Venture Minerals’ decision on the Riley project is motivated by the continuing delays they have experienced through the legal challenges and appeals brought by minority groups. This is again clear
evidence that as a state we have real issues with project approval processes which are sapping investor confidence in putting money into Tasmania and creating the jobs we so desperately need.
Venture has completed extensive pre-production work at the Riley Project over the past 18 months which will remain in place, “…affording Venture the opportunity to commence production, on relatively short notice, should circumstances change in the medium term,” according to the company statement.
“The Company will continue to monitor the situation closely and remains well placed to take advantage of any change in circumstance that would support a production decision at the Riley DSO Project.”
“Furthermore, Venture continues to be a party to appeal proceedings and is also actively seeking to recover all legal costs associated with past and present legal challenges.”
“In respect to the Mt Lindsay Tin/Tungsten Project the Company continues to progress and evaluate financing options for the development of its flagship asset, which remains one of the world’s largest undeveloped tin projects.”
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