Alara Resources (ASX:AUQ), an Australian base and precious metals producer with operations in Oman, has announced that its 51%-owned joint venture, Al Hadeetha Resources, operator of the Al Wash-hi Majaza Copper-Gold Mine, is facing legal proceedings in Oman's Primary Administrative Circuit Court in Ibra.
The case has been filed by 16 residents from villages near the Al Wash-hi Project, naming AHRL alongside several Omani government authorities, including the Ministry of Energy and Minerals, the Environment Authority, the Ministry of Housing and Urban Planning, and the Ministry of Interior.
The plaintiffs are seeking to suspend AHRL's project activities, claim compensation, and have the project’s licences declared invalid.
AHRL has rejected the claims and retained legal counsel in Oman to defend the proceedings.
The case is in its early stages, and operations at the Al Wash-hi Project continue under existing licences, permits, and government approvals.
At the time of reporting, Alara Resources' share price was $0.029.