Hopes of restarting production at one of Cornwall's most symbolic mines have taken a blow after a key stakeholder announced it may pull its investment.
Exploration work has been taking place at South Crofty mine, near Pool, for the best part of a decade in the hope that what was once Europe's only remaining tin mine will reopen after it closed in 1998 following the collapse of tin prices.
However, it emerged yesterday that Canadian company Celeste Mining Corporation, a key stakeholder, had announced it could pull its investment in the mine because of "higher than anticipated" cost concerns and "operational complexities".
The benefactor, which previously expressed its intent to buy the mine in 2011, owns a 19% stake in Cornish Minerals Limited, which controls South Crofty's mining rights, and lists the development as its "flagship" property.
In a statement on its website, it said it had terminated the position of chief executive Alan Shoesmith, who is also CEO of mine owners Western United Mines.
It said it was reviewing cost cutting measures at the mine, including "temporarily halting exploration" adding: "If the company and its partners cannot agree on such cost cutting measures, [it] may elect not to contribute further expenditures, which could result in dilution to its interest in the South Crofty Mine."
Western United Mines declined to comment.
