24th Mar 2014 10:17
LONDON (Alliance News) - GoldBridges Global Resources PLC Monday said a Kazakhstan Appeals Court has ruled in favour of annulling an environmental fine of KZT1.4 billion, about GBP4.7 million at current exchange rates, related to the company's Tailings Dam 3 incident in 2011.
The gold mining and development company said the fine, which was reflected as a USD9.4 million provision in the company's accounts, was annulled by the East Kazakhstan Regional Appeal Court of Republic of Kazakhstan.
The case started after an industrial accident at the company's tailings dam may have leaked toxic chemicals into a river near the site in 2011, when the company was called Hambledon Mining.
At the time Hambledon said the leak did not pose an environmental risk, but the Kazakh ministry of emergency situations said water tests taken in the Sekisovka River downstream from the plant recorded cyanide levels at more than 100 times the maximum concentration limit and warned local residents to stay away from the river.
The company said that, since the TD3 accident, it has put in place a comprehensive set of remediation and mitigation measures in order to improve the safety of the site but the regional Irtysh Department of Ecological Regulation had persisted in pursuing environmental claims against the company.
GoldBridges appealed in both the local and regional courts before taking the case to the Supreme court of Kazakhstan which, following a detailed review of the case, reversed the decisions of the lower courts.
The company said the Appeals Court decision to annul the fine ends litigation on the TD3 incident and any related claims, while the court has also determined that there has been no further damage to the environment for which a fine should be assessed.
GoldBridges shares were up 4.8% to 3.30 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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