SWAN Hunter will have to wait up to another two months to find out whether it will be granted its crucial shipbreaking licences.

The troubled shipyard had expected to receive a decision on the licences from the Environment Agency by the weekend.

However, the agency has requested an extension until April 17 in order to carry out further consultation work.

Swan's owner Jaap Kroese last night said the licences could now come too late for the 100 or more staff that will have to leave the Wallsend yard by the end of March once the Royal Navy Ships leave for sea trials.

There are more than 400 people working at the yard, many as sub contrractors.

Mr Kroese said: "They say there is going to be another delay. It is just taking such a long time.

"We want these licences so we can get on with some work once the ships go on sea trials in March. We need them because we are going to lose jobs. Another 100 jobs will go unless we get these licences."

Swans originally thought the agency would approve the licences before Christmas.

Richard Gray, a regulatory officer for the Environment Agency, said Swans had agreed to a further extension to the deadline until April 17.

"Extensions to licence determination periods are standard procedure when looking at new waste management licences or changes to existing ones as we need to ensure that measures are in place designed to prevent harm to the environment or human health," a spokesman added.

Fears that Swan's Wallsend yard could be mothballed this year emerged after it failed to land a major share of the £4bn aircraft carrier contracts.

Mr Kroese said bidding for the remaining work on a Ministry of Defence aircraft carrier project was unlikely to take place until 2009 and the licences were crucial to the future of the yard.

Swan's Port Clarence operation was mothballed in last May with the loss of 200 jobs.