Gold price up over 1%, closing in on new record
Bullion is now 18% higher for the year, boosted by anticipation of Fed loosening as well as significant buying by central banks.
Eldorado Gold’s (TSX: ELD) (NYSE:EGO) subsidiary in Greece Hellas Gold said Tuesday the environment ministry has granted the company a long-awaited licence from for its Olympias project, located in the country’s north.
The permit allows Eldorado to set up a processing plant in Olympias, which is crucial for the development of the mine.
“The project can now continue so that from the first quarter of 2017 the ore that will be produced at the mine will be processed at the Olympias facility,” Hellas Gold said in a statement (in Greek).
Greece’s leftist government had revoked Eldorado’s permit in August over environmental tests on the project but the country’s top administrative court annulled the government’s decision in January.
The permit allows Eldorado to set up a processing plant in Olympias, which is crucial for the development of the mine.
The Canadian company has been at odds with the Greek government for some time and earlier this year suspended work at its Skouries gold mine, one of the four projects the company has in Greece, adding that it was reviewing all of its activities in the country.
Late last month, the Vancouver-based miner was finally granted a building permit for the Skouries processing plant, but Eldorado decided to keep the project halted until the issuance of “pending routine permits and license,” which it needs to resume activities.
Despite the hurdles, the company has allocated $155 million, or about two-thirds of its total development budget for 2016, to develop its Olympias project.
The company is not the first miner to struggle in Greece. In the 1990s, the Skouries and Olympias projects belonged to TVX Gold Inc., which failed to develop them because of local opposition.
Eldorado had said it believed it could do better, in part because of its experience in developing mines in both neighbouring Turkey and China.
Currently the company employs 2,000 workers in an area with an unemployment rate above 30%.
Eldorado Gold is scheduled to release it results for 2015 on Wednesday, March 23.
5 Comments
Restless Boomers
Good to see reality dawning once again in Greece. Even Lefties can understand commerce it seems.
William Blake
Wow, true Twentieth Century provencal: Gordon Gecko puts his Ayn Rand down on the arm-rest of his lazy-boy and sets the “Lefties” straight!
patentbs
DTTB (don’t trust the b@st@rds!)
TakisV
As long as North American environmental standards are applied and strictly adhered to, with a well set out professionally signed off mine closure plan for end of miming operations, Gold Mining is a good start to develop a resources sector in Greece. The EC and Gov needs to also explore how it can support and assist peripheral industry for local support to the mines, so that consumables, services and maintenance work is done locally, and avoid the need for everything to be imported.
Value add activities (downstream) also need to be developed for additional employment opportunities, as well as practical training (operational and technical skills) to be supported on a subsidised basis by the EC so as to ensure local succession planning within a short a period as possible.
There are many Greek expats around the world involved in mining (Myself included), who should also be considered by Eldorado for immediate deployment, as they are familiar with customs and language, and would be easier to integrate with the local workforce.
Altaf
What one has to notice is there are two predators who are looking at Eldorado as a prey. One is the Govt, and other is the local mafia both have a common goal of squeezing the most of the company. As soon as company stood up for its rights, they are folding their tails between the legs. Its not coincidental that Greek env ministry suddenly realized that all is clear. They might be knowing it all along, only they were holding back so that Govt milks the company dry. Now it is for the company to wait for the local mafia. They will be waiting for the company to come to project site. Then they will start hue and cry for local jobs, social welfare, schools, hospitals, roads.