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Skouries — Grading and flotation buildings. (Image courtesy of Eldorado Gold)
Greek authorities have temporarily suspended work at one of the mines run by Canada’s Eldorado Gold (TSX: ELD) (NYSE:EGO) in northern Greece, after determining the company had violated some terms.
According to the country’s energy and environment minister, Hellenic Gold — a subsidiary of the Vancouver-based company— infringed the terms of technical studies. The revocation of those studies approvals, Panos Skourletis added, meant work in the gold-copper Skouries mine must stop for now, Agence France Presse reports. He didn’t provide further details.
The Skouries mine has had locals divided since early 2011, when Hellenic Gold was granted approval to mine in the northern peninsula.
Some claim the operation, owned 95% by Eldorado, may hurt tourism and the environment, while others believe it is good news for Greece, as it will generate new jobs and bring hundreds of millions into the struggling economy.
Truth is Skouries was the flagship project of the last government’s foreign investment drive and, for many, remains a test case that would reveal whether Greece could protect foreign investors despite local opposition.
Eldorado has invested more than $450 million since 2012 on construction and development of the Skouries and Olympias mines in Greece, and had planned to invest another $200 million this year to advance construction at Skouries.
In April, one of Greece’s top courts handed a key victory to the Canadian gold miner, rejecting a decision that blocked its plans to build a key processing plant at Skouries.
A spokesman for Eldorado’s subsidiary said the company had not received any formal notice from the Greek government so was not in a position to comment.
Eldorado shares were down more than 8% at $4.99 in TSX noon trading. Its NYSE-listed shares were also down over 9%.
Construction of Skouries mine and processing plant. (Satellite photo by Schizophonix | Wikimedia Commons)
8 Comments
paul
In a totally bankrupt country wasn’t that a smart decision
jgv1 .
The Greeks must think gold in the ground is as good as gold in the bank.
groeg
The Greeks are lyars.Hiding their assets and begging billions from the Europeans.And Europeans are silly giving credits for now 486 billions and they will never pay back.This ist politics, Europolitics.Hoping that IMF stays opposed to further credits.IMF Money, that is also my Money(Swiss).Our idiots in Gvmt just lately helped IMF with a further bunch of billions of good Swiss Francs.
David_R59
More bribes to be paid to another group of leftists.
There’ll be another election very soon and that will mean even more bribes.
Gene Byrge
The Greeks are Socialists. Socialism is based on everybody getting paid more than their effort justifies. It does not work because you cannot eat more than you produce. Where will you get it? Steal Beg Borrow???????? HEY GUYS;;;;READY? The secret is called work. If you don’t understand that word, consults the Germans and Japanese. And don’t ask to borrow MY car to go see them.
Gene Byrge
Their bankruptcy is not economic, it moral!
Secret Squirrel
Well done to the Greek government for banning this project. You cannot have a number of people setting a bad precedent to the majority of the population by working , being employed and earning their own money!That is pure meth addicted madness and immoral irrational thinking! Everyone knows if you need money ,then you use your credit card, you take out loans , you lend from people in other foreign countries. Why do you think they name a certain sexual position after us? We are Greek ! We love Greek ! We will Greek our neighbours and we shall Greek the IMF. Hail to the Greeks !
Patrizio
Congratulations to the people of Greece for the resounding reelection of Syriza. Let’s hope this stupid, destructive, future killing project is stopped once and for all. Well done to all those brave people putting their bodies on the line for their country and their democracy.