A 5,000 eco-home development planned by Eco-Bos in the St Austell region of Cornwall has been halted due to planning concerns.
The £1 billion scheme would have seen homes and green spaces built on five former china clay processing sites near Penwithick, Bugle, Par, Trewoon and Nanpean.
Eco-Bos submitted a planning application in February 2011 for the development, which was set to comprise 40 per cent affordable housing.
However, CN understands the company is holding back on the application while a potential legal challenge is being reviewed. The company is now scaling back its operations as a result of “prevailing conditions” in the sector.
Eco-Bos said there were “two significant challenges in progressing at our intended pace”, namely the struggling economy and “a planning framework still in a state of evolution”.
The firm added: “While there is ultimately a strong belief in a positive outcome to the long-term regeneration of mid-Cornwall, we feel that the prevailing conditions … mean that we will not progress significantly in the short term.
“We therefore have to take a pragmatic and realistic approach in how we manage the situation and its impact on our project at this time.
“We have come to the conclusion that we need to re-structure the company and, for the foreseeable future, scale back our operations associated with the project.”
Eco-Bos is a joint venture between Orascom Development and Imerys.