Adriatic Metals PLC, a Cheltenham-based exploration and development company, reported on Monday that the Constitutional Court of Bosnia & Herzegovina has recommended the repeal of a federal law that permits the removal of state forest for temporary use. This announcement caused a 5.6% drop in Adriatic Metals shares, closing at 186.15 pence in London.
The court argues that the authority to permit forest removal should reside with the state rather than the federation. Adriatic Metals anticipates that the court will release its full decision shortly. This ruling is expected to delay the planned removal of trees for the company’s extended tailings storage facility at the Vares processing plant, scheduled for construction in the upcoming months.
The potential impact of the court’s decision is significant, as Adriatic stated that every major project within the federation could be affected. In the interim, Adriatic Metals will continue utilizing its current tailings storage facility, which has the capacity to receive material until the first quarter of 2025. The company is also considering alternative tailings storage solutions within its concession area but will await the court’s full decision before proceeding.
Chief Executive Officer Paul Cronin assured stakeholders that Adriatic Metals is cooperating with all levels of government to fully understand the implications of the court’s decision and is committed to complying with the laws of Bosnia & Herzegovina. He confirmed that operations at the Vares silver project are continuing as planned, with an update on production expected in the upcoming Q2 quarterly activity report.
