Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said it is reviewing a press release from the Constitutional Court in Bosnia & Herzegovina that a Federal BiH law allowing for the temporary removal of state forestry should be repealed.
According to the press release, this is a decision for the State, not the local Federation, the Court ruled.
In a statement, Adriatic added it will assess what impact this might have on the Vares silver project when the Court's full decision is published.
Adriatic said for four years it made applications to the Federal Ministry for Water, Agriculture and Forestry, which were all granted.
During 2023, some of these routine applications were delayed, with the company told this was due to internal political positioning within the governing coalition in the Federation of BiH.
Adriatic added that based on the limited information in the Court's news release, it is assumed this decision will delay the removal of trees on the extended tailings storage facility, which is due to be constructed in the coming months.
While it waits for the full decision of the Court to be published, Adriatic added it will continue to use the current tailings storage facility, which can continue to receive material until the first quarter of 2025.
Adriatic is also reviewing the possible permitting of several alternative tailings storage facilities within the company's concession area.
Paul Cronin, chief executive, commented: “Adriatic is working closely with all levels of government to have a greater understanding of the Court's decision and we will remain committed to complying with all the laws of Bosnia and Herzegovina.
"Operations at the Vares Silver Project are continuing as planned and we will provide an update on production in the second quarter Quarterly Activity Report in the coming weeks."