Inmet Mining Corp. shelving copper project after Turkish court’s ruling

Inmet Mining Corp. is mothballing a copper project in Turkey after a court there rejected the company’s appeal of an injunction against development activities at the site.

The news came after Inmet reported a first-quarter profit of $106.7 million yesterday.

Inmet also said the Trabzon Regional Administrative Court rejected an appeal by the Turkish Ministry of Energy and Natural Resources over the injunction against the Cerattepe copper property.

With the rejection, Inmet said, “the injunction will continue to prevent (its subsidiary) from carrying out further development work on the Cerattepe property until the end of this year.”

That’s when Inmet expects the Rize Administrative Court to render its decision on applications filed on cancelling operating licences for the project.

Inmet said it is working with the ministry “to defend against these applications … and believes they are without merit.” But the company no longer expects production to begin at the Cerattepe project next year.

Earlier yesterday, Inmet said its first-quarter profit rose 6 per cent to $2.21 per diluted share from $101.1 million, or $2.09 per share, a year earlier on higher copper and gold prices.

Gross sales fell 4 per cent to $276.2 million in the first quarter, compared with $286.6 million a year earlier.

The Canadian Press