DENVER – State officials have revoked a radioactive materials license for a company proposing to build a mill to process uranium from local mines in western Colorado.

The recent decision by the Colorado Department of Public Health and Environment came at the recommendation of a hearing officer.

The proposed Piñon Ridge uranium mill near Naturita has been estimated to cost $120 million and would process 500 tons a day of uranium and vanadium ore from mines in western Colorado.

Environmental groups had challenged the state’s 2013 issuance of a license for the project.

Pinon Ridge Resources CEO George Glasier says the company will continue pursuing the mill. He says the company is considering whether to appeal the state’s decision or to re-apply for a new license.