Dragon's Kuusamo EIA failed month ago

Australian Dragon Mining is a junior gold company operating in Finland and Sweden
with small mines. Swedish Svartliden mine has run practically out of gold and Finnish Vammala
production center with small underground mines is suffering from high production costs
some times even over price of gold.
The future of the company is based on Kuusamo project in South East Lapland, where
they have well defined gold deposits. Unfortunely the gold is in uranium ore and  would create
environmental problems, and Finns are aware of mining problems due to Talvivaara mess
and and therefore project is heavily resisted. Major source of resistance is the second
largest skiing resort Ruka and Oulanka national park next to Kuusamo next to planned mine.
http://dragon-mining.com.au/operations/overview
http://search.asx.com.au/s/search.html?query=dra&collection=asx-meta&profile=web

The recent releases 26.5. and 3.7.2014  are about minor undeveloped mining rights not Kuusamo or major business
There has been a fight of leadership in company due to negative economic prospects.

There are several factors the company does not tell :
1) Kuusamo city council has "kaavoitus"/"land allocation" rights in Kuusamo,
it can deny building of the mine by allocationg the land for other uses.
The city council has already decided to resist the mine. Dragon would have
right to appeal the land allocation , and according
to the new mininglaw the company should show extraordinary reason for exception
of the land allocationby the city.In practise it would need to show larger benefit than
the damage to travelling and other sources of living, which is unlikely.
Even if against odds the mine would winning, it would lead to process of at least
about 3-5 years in courts.
2) The city would likely have a veto against the mine because of a special uranium
consideration and high uranium amount in the ore.
3) Dragon has prepared Environmental Impact Assessement for Kuusamo for several years.
on June 5th 2014 the environmental authority POPELY disqualified the EIA
There has been no press release by Dragon Mining about the EIA disaster,nor reaction by the stock in Australia.
http://dragon-mining.com.au/asx-releases/2014

This  is info on on environmental authority pages: http://www.ymparisto.fi/fi-FI/Asioi...inti/YVAhankkeet/Kuusamon_kultakaivos_Kuusamo
see Yhteysviranomaisen lausunto ympäristövaikutusten arviointiselostuksesta
page 49:
"Koska edellä olevat olennaiset ympäristövaikutukset on selvitetty puutteellisesti, niin arviointiselostus ei ole YVAL 12 § mukaisesti riittävä ja se on tehtävä uudelleen, mikäli hanketta halutaan jatkaa.
Olennaisten puutteiden lisäksi hankkeesta vastaavan tulee uutta selostusta laa- tiessaan huomioida myös muut puutteet, virheet ja ristiriitaisuudet, jotka on tuotu esiin sekä yhteysviranomaisen lausunnossa että lausunnon antajien ja mielipiteiden esittäjien kannanotoissa. Yhteysviranomainen on lausunnossaan perustellut edellä esitetyt olennaiset puutteet."
free translation:
"Because the essential environmental impacts, described above, have been assessed in a lacking manner, the EIA is not sufficient according to the EIAlaw 12§ and it should be redone, if the project is wished to be continued. Beside the essential lacking matter the responsible person should shouldnotefor the new EIA also the othe lacking details,mistakes and controversies, which have taken up by the contact authority, and by ones providing statements and opinions. The contact authority has given grounds for the essential lacking details in its statement"

Threre were about 225 in general very negative statements by local people and communities
The EIA matter was also in Finnish news:
http://www.kaleva.fi/uutiset/pohjoi...nkkeen-yva-olennaisesti-puutteellinen/666770/


Redoing the EIA with required water and fish measurements etc would take at least
one year and cost lots of money and need design of the project in expensive manner
to avoid pollution and still the result can be negative to Dragon.
EIA is needed for application of environmental permit, and land allocation permits by the city are also essential.

The position of Dragon in Kuusamo is in a strong deadlock.

In Europe listed companies should tell major events affecting their stock value,
apparently in Australia you tell only the minor details?

Yours
NordicInformer

I know mines and miners in Nordic countries.