By Laura Clarke 

The London Metal Exchange said Wednesday a U.K. court has refused it the right to appeal a ruling in March that stopped planned reforms to the exchange's warehousing practices in their tracks. The exchange can still seek to overturn the ruling through the Court of Appeal.

Last month, Russia's United Co. Rusal, scored a surprise victory when a U.K. High Court judge quashed changes the LME had proposed to address delays in accessing metals. The company, the world's largest aluminum producer, said the planned changes to the LME's warehouse rule book would cost it "at the very least tens of millions of pounds."

The LME, owned by Hong Kong Exchanges & Clearing Ltd., had proposed that from April 1 warehouses with wait times for deliveries exceeding 50 days would be required to ship out more metal than they take in. But a judge ruled the exchange's consultation with the industry ahead of the changes was "unfair and unlawful."

Since then, the LME has said it is seeking legal advice before deciding whether to conduct a new consultation or appeal the court ruling.

In a morning hearing Wednesday, the same court declined the LME leave to appeal against the judgment, according to LME spokeswoman Miriam Heywood. Such a refusal isn't uncommon, and the metals bourse can still attempt to overturn the ruling through the Court of Appeal.

"In most cases permission to appeal to the Court of Appeal is required. The lower court may grant permission, but this is unusual as it is a way of saying that the judge accepts the decision may not be right," Richard Buxton, Partner at Richard Buxton Environmental and Public Law, told The Wall Street Journal.

"More often, permission is refused and one has to apply for permission from the Court of Appeal itself. It is vital to initiate this process quickly," he added.

The exchange said Wednesday no course of action has been decided.

"We continue to believe that Rusal's complaint was without merit in its entirety and we are taking legal advice with regard to our next steps, including whether to apply to the Court of Appeal for leave to appeal and/or to re-consult," said Ms. Heywood.

Rusal declined to comment. Macfarlanes, which represented Rusal in the judicial review, and Latham & Watkins LLP, which represented the LME, also declined to comment.

Write to Laura Clarke at laura.clarke@wsj.com

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