TORONTO (miningweekly.com) – Canadian project developer Eldorado Gold will suspend most of its construction projects in Greece, owing to the actions and/or inactions of Greece's Ministry of Energy and Environment.
Frustrated with the inefficacy of the ministry to issue routine permits and licences in a timely manner, compounded by the ministry’s suspension last year of some of subsidiary Hellas Gold’s permits and licences, Eldorado on Monday advised that it would suspend construction at the Skouries project, in which it had already invested $300-million.
The project developer noted that a building permit that would allow Hellas to complete the construction of the Skouries processing plant had already been delayed for more than three years.
The company also warned that, should it not receive permits by the end of the first quarter, it would suspend construction of the Olympias project.
It would also place the Perama Hill and Sapes projects on care and maintenance, after waiting two years for the ministry to approve the Perama Hill project's environmental impact study and for a drilling permit required at the Sapes project, both located in Thrace, north-eastern Greece.
Eldorado further advised that it was evaluating the merits of implementing an exploration programme at the Stratoni mine, where only three more years of mining remained, in light of the current investment climate in Greece.
“At this time, we would instead prefer to be creating additional employment in Greece and advancing the construction and development of our Skouries and Olympias projects, in Halkidiki, as well as our assets in Thrace. However, we have a duty to all our stakeholders, and the significant time and process risks created by Greece 's Ministry of Energy and Environment have left us with no choice but to reduce activities and personnel,” stated Eldorado president and CEO Paul Wright.
Since 2012, Eldorado has created about 2 000 direct jobs in the country and invested more than $700-million in the development of the Skouries and Olympias projects – including tax payments in excess of €120-million to the Greek government.
Eldorado has a diverse geographic footprint, with three operating mines in China, two in Turkey and one in Greece.