The partners behind the $1.2bn Hidd Steel Mill project in Bahrain are expected to obtain all the relevant construction permits for the scheme by the end of June.

The permits will allow the project to break ground in July as originally planned. Muharraq Municipal Council blocked the permit because of an issue related to environmental studies for the 4 million tonnes-a-year facility, voicing concerns that an independent study was not carried out.

“The [joint venture] partners obtained the environmental licence and the no objection letter from the Ministry of Industry & Commerce to proceed with obtaining the building permit,” a source tells MEED. “With those documents, the building permits should be secured.”

Local media reports in Bahrain are saying the municipal council has said it will issue a building permit if the director-general of Bahrain’s Public Commission for the Protection of Marine Resources, Environment and Wildlife, Adel Al Zayani, accepts full responsibility for the plant.

The Hidd Steel Mill is being constructed by United Steel Company (Sulb) a joint venture comprising of the Bahrain-based United Steel Holding Company (Foulath) and Japan’s Yamato Kogyo Company.