Scotia - Permitting Update

RNS Number:7418M
Van Dieman Mines plc
27 November 2006

                              VAN DIEMAN MINES PLC

                        Scotia Mine - Permitting Update

Van Dieman Mines plc ("Van Dieman" or "the Company"), the AIM-listed mining
company which is developing tin and sapphire mines in Tasmania, announces that
the Development Proposal & Environmental Management Plan (DPEMP) for the Scotia
mine has been approved by the Department of Tourism, Arts and Environment (DTAE)
for lodgement with the Dorset Council. Both the DPEMP and associated Development
Application are now lodged with Council and have been placed on public
exhibition which closes on 15 December, 2006. Following the public exhibition
period the Tasmanian Board of Environmental Management will consider all issues
and representations received from the public and Government agencies and advise
Council of their decision to approve mining or otherwise. However the Government
advised earlier this week that, due to manpower and resource constraints within
the DTAE, enabling documentation relating to the Scotia DPEMP may not reach
Council prior to the February/March Council meetings timetable. Not withstanding
this advice the Department has acknowledged that, given the stage of development
of the Scotia application, it was likely to be classified as a priority project.

The Company has also been advised by the Australian Government, Department of
Environment and Heritage, that the proposed mining at Scotia is not a controlled
action under the Environmental Protection and Biodiversity Conservation Act 1999
(EPBC Act). This means that their involvement is not required before mining at
Scotia can commence.

Clive Trist, Managing Director commented:

"We continue to make steady progress towards bringing our first two mines into
production.

"The lodging of the DPEMP and Development Application with Council and the
Australian Government decision are important steps in the lengthy and at times
tortuous process of being granted approval to commence mining. Given the recent
advice from DTAE regarding manpower and resource constraints we continue to work
with them to expedite the approvals process so that we can then proceed
immediately with the Scotia mine start up program. We are confident that full
approval will be given in due course. The treatment plant is in the process of
being prepared for shipment in the USA and other items of plant and equipment
are beginning to arrive in Tasmania".

"We are confident of having plant and equipment in place so that we can commence
mine start up as soon as the final mine permits are issued".


ENQUIRIES:

VAN DIEMAN MINES plc               Tel: [phone]
Clive Trist, Managing Director     Email: [e-mail]
 
BANKSIDE CONSULTANTS               Tel: [phone]
Michael Padley / Daniela Hale

Editors' Note

Van Dieman Mines is developing tin and sapphire mines in north east Tasmania
where the Company holds several leases. The Scotia and Endurance mines are
expected to be in production during the first half of 2007. A pilot plant has
been operating in tenements close to and adjoining the Scotia lease since
November 2005. The plant has produced mine run corundum including sapphire and
associated semi precious gem material including topaz, zircon and spinel for
evaluation by the Company's contracted laboratory in the US.

A six-year contract was signed in July 2005 with tin smelter and refiner,
Thaisarco (an Amalgamated Metal Corporation plc subsidiary), for the offtake of
the Company's entire tin concentrate output of 1,350-1,500 tonnes contained tin
per year at prevailing LME prices. In addition, an agreement has been signed
with a well known and highly respected US jewellery and gem stone marketer to
market the sapphire production, and the potential market for the spinel gemstone
by-product is continuing to be evaluated. The initial marketing for both
products is underway and the Company should be in a position to give a detailed
update by the end of the year.

The Department of Tourism, Arts and Environment is the Tasmanian government
department that oversees and administers the DPEMP process on behalf of the
Tasmanian Board of Environmental Management who ultimately issue certification
or refusal on all Development Project Applications.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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