Silver Mines (ASX:SVL) shares dropped today over a New South Wales court decision to allow a challenge to the development of the Bowdens Silver Mine.
The junior explorer, which went into a trading halt this morning (16 August), says the New South Wales Supreme Court, Court of Appeal has today upheld Bingman Catchment Landcare Group Incorporated’s appeal against an earlier court ruling allowing the development to go ahead.
“The orders made by the Court of Appeal unfortunately mean that the development consent for the project can no longer be relied upon by the company,” Silver Mines says.
Shares slid 13% to $0.135 as of 1:13pm AEST today (16 August) after the trading halt was lifted.
On 14 March 2024, Silver Mines announced its subsidiary Bowdens Silver had successfully defended the proceedings begun by activist group Bingman Catchment Landcare Group Incorporated in the Land and Environment Court of New South Wales.
The action was against the state government’s Independent Planning Commission (IPC) and Bowdens Silver, challenging the development consent for the project approved by the IPC in April 2023.
New South Wales’ Land and Environment Court dismissed those proceedings.
Subsequent to this decision, Bingman filed an appeal in the Court of Appeal and a hearing was held on 22 July 2024.
Silver Mines says the appeal proceedings challenged the administrative process taken by the IPC in deciding to grant the development consent for the project.
The Bingman Catchment Landcare Group has sought a declaration from the Court of Appeal that the development consent is void and of no effect.
“The appeal was primarily centred on whether the IPC failed to fully consider the impacts of a potential transmission line, which was one of the options being considered to power the project,” the company says.
The preparation and submission of a new development application for the project, including power supply options, is being considered.
The Bowdens Project, located in central New South Wales, is expected to create over 320 jobs during construction and over 220 ongoing jobs.
It is considered the largest undeveloped silver deposit in Australia and one of the largest globally.
Silver Mines says the project will deliver “significant long-term economic and social benefits” for New South Wales and the local communities across the Mid-Western Regional Council area.
The company adds that it is working with its legal advisers to properly assess the implications of the decision and will provide an update to the market following the review.
Write to Angela East at Mining.com.au
Images: Silver Mines
