WORK on part of the £54 million Sirhowy Enterprise Way has been halted by the Welsh Assembly after a protected species was discovered on site.

Dormice habitats were found in St David's Wood, in Blackwood, which forms the route of a controversial PFI road to Oakdale business park.

The mice, which are protected under European law, were discovered by officers from Caerphilly county borough council as work was due to begin on the project.

The local authority and developers Costains have now retrospectively applied for a licence to carry out work on the southern part of the development in St David's Wood, which the National Assembly will consider over the next few days.

In the meantime, Costains are prohibited from carrying out any work in areas where the dormice have been found.

Carl Taylor, from the St David's Wood Appeal, said St David's Wood was only one of two places in Islwyn where the dormice are to be found.

A spokesman for the National Assembly said: "A licence has been applied for to disturb dormice in an area of the development, and we are currently considering this.

"Officials will have to assess whether the development, if it continues, will have a detrimental effect on the dormice. The granting of the licence is not a formality."

A spokesman for Caerphilly county borough council said they are now working with a leading ecologist to ensure no disruption is caused to the habitats while they are waiting for the licence to come through.

He added: "We are waiting for the receipt of the dormice licence any time now, but in the meantime work on areas not suspected to be inhabited by the dormice is being carried out."

A spokesman for Costains said: "Part of our job will be to remove the dormice to a safe area which will be adjacent to the site."

He added: "We have not worked in those areas which have been identified as being used by dormice."

The dormice are the second obstacle to face the Sirhowy Enterprise Way in the last few days. The Argus has reported how eight to ten protesters had camped in the woods and claimed squatters' rights in a bid to prevent the developers tearing down the trees.

On Monday they were joined by King Arthur, a Druid swordbearer and veteran of the Newbury bypass protests in the 1990s.