LONDON--Antofagasta PLC (ANTO.LN) said Friday it has been denied permission to renew two of its long-held federal mining leases in the iron range region of north-eastern Minnesota.

The company said its fully owned Twin Metals Minnesota LLC was in the early stages of a proposal for an underground copper- and nickel-mining project.

"Denial of the leases is inconsistent with federal law, the terms of leases themselves and the federal government's established precedent in supporting and renewing the leases over five decades," the company said.

"Twin Metals is committed to progressing the project and will continue to pursue legal avenues to protect its contractual mineral rights," its added.

The U.S. Forest Service wasn't immediately available to comment.

The company, which has interest in mining, transport and water distribution, has renewed the licenses twice before.

Shares at 1120 GMT were down 12.50 pence, or 1.8%, at 671 pence, valuing the company at GBP6.62 billion pounds ($8.3 billion).

-Write to Olga Cotaga at olga.cotaga@wsj.com

(END) Dow Jones Newswires

December 16, 2016 06:51 ET (11:51 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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