Mayo County Council faces an appeal over a claim for £2 million arising out of a ban it imposed on gold-mining in the county nearly nine years ago. The case will be heard in the Supreme Court next month. Mining companies Glencar and Andaman Resources, which discovered a gold deposit in the Cregganbaun area near Westport, are appealing a High Court decision by Mr Justice Kelly made in favour of Mayo County Council in August 1998.
Glencar and Andaman had sued the council for almost £2 million damages.
The damages claim had been filed in the High Court following a ruling by Mr Justice Blaney in 1992 that Mayo County Council acted illegally in imposing a blanket ban on gold-mining over a 300-square mile area.
In his judgment, Mr Justice Kelly held that the ban on mining was illegal. However, he said this did not give an automatic right to damages to Glencar and Andaman Exploration.
Ruling that no case for damages had been made, Mr Justice Kelly pointed out that mining for gold was a high-risk, speculative enterprise.
The Supreme Court appeal hearing is expected to take three days.