Critical Metals provides update on Wolfsberg lithium project

Critical Metals (CRML) announced that ECM Lithium has received the decision of the Federal Administrative Court in the appeal proceedings concerning the requirement for an environmental impact assessment for its “Koralpe Lithium Mining” project. The Federal Administrative Court overturned the decision of the Carinthian state government, which had ruled that no EIA under the Austrian EIA Act 2000 was required for the construction of the lithium mine on the Koralpe mountain and remanded the matter to the Carinthian state government for a new decision. The Federal Administrative Court accepted the project applicant’s argument that the size of the project does not exceed the 10-hectare threshold stipulated in the Austrian EIA Act for the requirement of an EIA. However, the court thinks that the current legal provision is not in accordance with European Union law. The Federal Administrative Court accepted the project applicant’s argument that the size of the project does not exceed the threshold of 10 hectares stipulated for the EIA requirement in the Austrian EIA Act. Therefore, although the project falls below the 10-hectare threshold stipulated in the law, the Federal Administrative Court has ordered the Carinthian state government to conduct a case-by-case review to determine whether the project could lead to significant harmful or burdensome environmental impacts. At the same time, the Federal Administrative Court has granted leave to appeal its decision to the Administrative Court of Justice, as there is no existing case law on whether the Austrian regulation complies with European requirements and how this legal provision should be interpreted. The decision does not mean that the project must undergo an environmental impact assessment, but that the Carinthian state government must disregard the 10-hectare threshold, which the Federal Administrative Court considers incompatible with European law and reassess whether an EIA is necessary based on further expert opinions.