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An application to create a landfill tip for ash from the incinerator at Archallagan Plantation has been turned down by the Council of Ministers.
Planning permission for an ash-processing facility has instead been given to Old Turkeyland Quarry in Balthane.
The council has also approved a residual landfill facility at the Point of Ayre.
Tynwald is due to give its final approval later this month.
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