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Karelian Diamond Resources (AIM: KDR) has won a favorable court decision on its diamond project in the Kuopio Kaavi region of Finland that, once developed, would be the first diamond mine in the European Union.
Application for the mining concession over the company’s Lahtojoki deposit had previously been approved by TUKES, the Finnish mining authority, and the National Land Survey, on the order of TUKES, carried out the proceedings to establish the mine concessions.
Through this process, the Survey decided on a ground rental compensation totalling €162,815 to the land owners, which Karelian paid in cash by March 2023. However, the land owners appealed the decision with the Finnish Land Court, seeking a larger compensation as well as a change to the mine boundaries.
On Monday, the Finnish Land Court maintained the original decision on the mine boundary and rejected most of the claims brought by the land owners on the compensation. Three items were referred back
to the National Land Survey for review.
Finalization of the mine boundaries, said Karelian, represents “an essential step” in relation to the proposed development of the Lahtojoki diamond deposit. A valid mining concession would allow the project to proceed through development, subject to any relevant environmental assessments or requirements.
The company believes that the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable low strip ratio open pit diamond mine.
The deposit is said to contain high-quality colourless gem diamonds, as well as pink diamonds and other coloured diamonds, which can command prices up to 20 times that of normal colourless gem diamonds, it noted.
