- West Wits Mining (WWI) has been hit with a setback, after an appeal was lodged against the environmental authorisation (EA) for its Witwatersrand Basin Project (WBP) in South Africa
- The appeal was lodged as part of a mandatory 20-day public review and the complaint now has 90 days to be addressed
- The gold producer has identified two other potential appeals, who may be granted extra time outside of the 90 days, because of COVID-19
- West Wits said it was working to respond, and had foreshadowed appeals been launched when the initial EA was granted last month
- But, the company’s share price has dived following the news, down 31.8 per cent to 1.5 cents per share
West Wits Mining (WWI) has been hit with a setback at its Witwatersrand Basin Project (WBP), with an appeal lodged against its environmental authorisation (EA).
As part of West Wits’ bid to gain a mining licence for the project in South Africa, it applied for environmental approval from the Department on Mineral Resources.
It was granted preliminary approval last month, pending a 20 day public review period, where any appeals by interested or affected parties (IAP’s) could be lodged.
Three IAP’s have now come forward, with one lodging an appeal.
The appeal in question has been handed over to the company’s legal team, with West Wits to soon submit a formal response.
From there, the appeal’s directorate has 90 days to look at both parties’ arguments and make a decision.
However, in a blow to the gold explorer, the EA for WBP can not be further acted on until a decision has been made. Consequently, this delays the mining right approval.
While in another blow, the company also revealed today it knew of two other potential appeals.
The appeals haven’t been submitted in the 20-day period, but the COVID-19 pandemic may allow them to successfully argue for an extension.
In a statement released today, West Wits said it always knew appeals were a possibility.
“The activation of the appeals process, which was not unexpected and previously foreshadowed, will delay the granting of the mining right. However, the company remains confident in the soundness of its EA process and is confident of a successful outcome,” the statement read.
However, shareholders don’t seem to agree with the company’s outlook.
Shares in West Wits Mining fell a significant 31.8 per cent, to close today at 1.5 cents per share.