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Chunks of coal on the beach around Union Bay, B.C.John Lehmann/The Globe and Mail

One of the companies behind a plan to bring Chinese workers to a coal mine in B.C. has shut down a separate project due to a legal challenge over foreign worker permits.

Canadian Dehua International Mines Group is among a pair of companies fighting a court battle to bring 200 Chinese miners to the proposed Murray River underground coal mine near Tumbler Ridge, B.C.

Dehua has issued a statement that says it is stopping work at another proposed mine near Tumbler Ridge, known as the Wapiti River project, after investors raised concerns about the Murray River court challenge.

The company's statement says investors have expressed reluctance to fund the project, and work will not resume unless new investors can be found.

The plan to bring Chinese workers to the Murray River mine, owned by HD Mining, has prompted unions to file a lawsuit and the federal government to conduct a review of the entire temporary foreign worker program.

The Federal Court gave the unions the OK last week to proceed with the lawsuit, but HD Mining has said it will file of appeal to challenge the union's legal standing.

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