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One of the biggest investors freezes its activities in Greece

12 January 2016 / 13:01:02  GRReporter
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Canadian Eldorado Gold mining company is suspending its investment plans in Greece. According to the company announcement to the Toronto Stock Exchange, the reason for the change is the attitude of the Greek Ministry of Energy and Environment, which is defined as "openly confrontational."

The announcement indicates that the subsidiary company in Greece, Hellas Gold "is presently unable to complete its development plans in Halkidiki as a result of the actions and inactions of the Ministry and other government agencies regarding the timely issuance of routine permits and licences, which is not only a legal responsibility, but also a contractual obligation of the Greek state."

Eldorado Gold notifies that it will suspend the construction works of the mine near Skouries and warns that the same will follow in the area of ​​Olympias if the company does not receive the appropriate licence by the end of March. So far, it has invested $300 million in the project in Skouries and employed 500 people in the activities in Olympias.


Meanwhile, the Canadian company has suspended its activities and investments in the regions of Lofos near Perama in Evros and the village of Sapes in Rodopi region, as the approvals for both projects have been pending "for more than two years." The company will continue to carry out minimal maintenance works on the projects to preserve the rights to exploitation.

In addition, the company states that it is considering postponing the expansion of the mine in the village of Stratoni in Halkidiki that has a life of mine of approximately three years, if investments amounting to $25 million are not made, which require the timely issuance of permits by the Greek authorities.

The Canadian company notes that the projects in Greece are promising, have proven economic and social benefits, but the significant risks for their implementation created by the Greek Ministry of Energy and Environment has left it with no choice but to reduce activities and staff.

It leaves open the possibility of resuming its activities and investment plans upon the timely issuance of the necessary permits and the achievement of an actual partnership, in the context of the arrangements between Hellas Gold and the Greek State.

Eldorado Gold’s President and CEO Paul Wright will meet with Minister of Energy and Environmental Panos Skourletis on Wednesday. Today he informed the media about the company's intentions and later he will meet with representatives of Hellas Gold employees to inform them of the events.

Tags: EconomyCompaniesGold minesHalkidikiEldorado companyHellas Gold Suspension of investment plansGreek Ministry of Energy and Environment
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