A North Carolina county has banned all mining activity in the county for 60 days in the wake of concerns over Piedmont Lithium’s proposed lithium mine, Kallanish reports.

The moratorium was approved on 6 August by the commissioners of Gaston County. It prevents Piedmont Lithium from doing any exploratory drilling and imposes a deadline for the commissioners to develop new regulations to govern Piedmont Lithium’s planned mine, the first mine of its kind in Gaston County.

“It is abundantly clear that a mine of this size…was never anticipated in your development regulations,” says attorney Tom Terrell, who was hired by the commissioners to advise them on the Piedmont project, Reuters reported.

In a statement, the company says it supports Gaston County’s actions.

“We wholeheartedly agree that it’s important for the commissioners to have the time to review existing state and county regulations and how they may apply to plans for the Carolina Lithium Project,” says Piedmont Lithium eco Keith Phillips in a statement. “We note that counsel representing the county made clear in a statement during the special meeting that Gaston County supports economic growth and development, and that the resolution is not intended to stop mining but rather to give the county time to perform their due diligence.”

The company plans to work with the county and the public as the project moves forward to get the needed county zoning variance, he says.

Piedmont Lithium also confirmed that the company is on track to publish its upcoming definitive feasibility study for the project before year-end 2021, as it works on required state and local permits for the Carolina Lithium Project. The company has said it expects state approval by mid-2022.

Last fall, the company signed an agreement to provide lithium to Tesla, but the schedule to begin providing that lithium was pushed back indefinitely last week in an agreement by both companies.

Construction could begin in Q2 2022, subject to market conditions, financing and permitting/approvals. The facility would produce 30,000 tonnes/year of lithium hydroxide. The operation would employ 500 workers. The company envisions Gaston County becoming a major lithium hub. It says it intends in September to seek a loan for the Carolina project from the US Department of Energy.