City Council could be forced to rescind its decision and allow Perilya to truck ore from the Potosi mine through parts of the city.
The council has received legal advice that casts doubt on the legality of its resolution last month to allow operations at Potosi to resume.
Approval was granted on the condition that Perilya use a yet-to-be constructed haulage road around parts of the city to transport ore to its Southern Operations.
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