TORONTO (miningweekly.com) – Alamos Gold on Thursday confirmed to Mining Weekly Online that an injunction was being placed on the previously approved environmental-impact assessment (EIA) for its Agi Dagi gold project, in Turkey.

The development would impede project momentum until Alamos had assessed the “cumulative impacts” of the project in conjunction with other potential mining projects in the region.

Alamos spokesperson Scott Parsons confirmed that an injunction had been placed on the approval of the project’s EIA, relating to the lack of a cumulative impact assessment (CIA).

Toronto-based Alamos in August last year received the final environmental approval for the project from the Turkish Environment and Urbanisation Ministry responsible for reviewing the EIA, but similar to its Kirazli project, the Canakkale Administrative Court issued an injunction order to the Ministry regarding its approval of the Agi Dagi EIA.

Alamos had already started a cumulative impact assessment for Agi Dagi, which was nearly complete.

As had happened with the Kirazli EIA, the Agi Dagi EIA was also opposed by a local nongovernmental organisation and the same court filed an injunction against the Ministry.

On the basis that there had not previously been any requirement to include such an assessment in an EIA report, the Ministry formally challenged the court's decision to temporarily revoke the Kirazli EIA. This injunction was appealed in the Lower Court and was elevated to the High Court where it was currently being reviewed.

Alamos had completed a CIA for Kirazli, which was approved by the Ministry of the Environment, and this had been submitted to the High Court.

Financial services firm Desjardins Capital Markets analyst Michael Parkin in a note to clients said the development was "slightly negative" for the company.

He noted that the High Court could now either reject the injunction on Kirazli, which would put the EIA into good standing; accept the CIA that has been submitted and approved by the Ministry of the Environment and, thus, potentially allow the EIA to stand, or it might require Alamos to refile the EIA application, including the CIA, with the Ministry.

A decision on Kirazli from the High Court was expected soon, according to Alamos’ most recent guidance, which indicated that it expected a ruling in the next three to four months.

Alamos expected to produce the first gold from Kirazli, the first of the company's Turkish projects, within 18 months of receiving the outstanding forestry and operating permits. Initial production at Agi Dagi was expected about 18 months after Kirazli had started operations.

Parsons highlighted that Alamos had always planned on developing Kirazli first and, as such, did not expect the injunction to impact timelines for Agi Dagi.

Alamos acquired Agi Dagi along with Kirazli for about $90-million in 2010.

The miner expected to produce about 143 000 oz/y of gold over a seven-year mine life based on a 2012 prefeasibility study and saw significant synergies to boost economics through incorporating the nearby, higher-grade Camyurt deposit.