Galantas Gold could seek compensation from Northern Ireland police

Galantas Gold Corporation advised the market on Monday that it received notification that the Police Service of Northern Ireland would not provide its required anti-terrorism cover in regard to blasting operations required for mine development at the Omagh Gold Mine.

The AIM-traded company said the PSNI required that it supervised transportation and use of certain rock-breaking materials and explosives at the Omagh Gold Mine, due to the potential terrorist use of those materials.

It said the PSNI provided anti-terrorist cover for the transportation and use of blasting materials throughout Northern Ireland.

Explosives are widely used in quarries and one other operating underground mine, the Galantas board said, adding it understands that no charges are made to the quarries or the other operating underground mine in Northern Ireland for PSNI anti-terrorism cover.

The company said it was told that, due to PSNI resource constraints and competing priorities, PSNI was currently only prepared to provide anti-terrorism cover for a maximum of a two hour period, two days per week.

It would also require a cost recovery agreement.

Two, two hour periods per week is insufficient to sustain the development or operation of the Omagh Gold Mine, Galantas said.

The company said it disagreed with the principle of costs recovery for anti-terrorism policing but advised PSNI that it was prepared to enter into a costs recovery agreement, without prejudice to its legal remedies in that respect, for a two hour period, five days per week.

Although PSNI provided the costs analysis for the five day and two hour period anti-terrorism cover, which was agreed without prejudice, the PSNI had since refused to provide the cover, citing competing priorities, Galantas said.

The company was reportedly advised that others had recently been provided in excess of that amount of anti-terrorism cover and without a cost recovery agreement.

It said it sought to discuss the issue at the highest levels of command in PSNI and the Northern Ireland Office but engagement has so far been declined.

The company said it wholeheartedly supported PSNI and its officers in its "laudable objective" of maintaining peace, law and order in Northern Ireland in difficult circumstances.

However, the company said it believed it is improper of PSNI to act in a discriminatory manner against a lawful business.

It said it had been given no alternative other than to pursue its legal options, which may include seeking substantial compensation for the costs of delays.

“The PSNI decision is clearly a blow to any proposed mine development in Northern Ireland and negatively affects the livelihoods of our employees and their families,” said president and CEO Roland Phelps.

“The company pays full UK taxes, royalties and mineral license fees.

"A cost benefit analysis of PSNI providing the required anti-terrorism cover required by PSNI is hugely to the state's benefit - not that this is any reason to allow a potential terrorist threat to interfere with any citizen's lawful rights or business.”