Eldorado Gold to suspend investment plans in Greek projects
Canadian firm Eldorado Gold has announced plans to suspend investment at its operating mines, development projects and exploration assets in Greece.
The company made the decision due to delays in securing routine permits and licences for the construction and development of Skouries and Olympias projects in Halkidiki, northern Greece.
According to the miner, the delays hit the project schedules and costs, rendering the development and operation of these assets unviable.
Eldorado Gold president and CEO George Burns said: "It is extremely unfortunate to find ourselves at this impasse when we should be advancing an important commercial project in partnership with Greece and adding another 1,200 jobs to our current workforce of approximately 2,400 people in Greece."
Burns also noted that the company acquired the Kassandra Mines for around $2bn in 2012, which was followed by an additional $1bn investment in the country.
Burns added: "That figure would double if Eldorado were able to fully develop its Olympias, Skouries and Perama Hill assets. However, as a result of the delay in issuing permits by the Greek Government, Eldorado is unable to continue investing in the country.
"Should the Greek Government wish to work within the framework of its contractual obligations with Hellas Gold, issue permits in a timely manner and support the investment, Eldorado will then be in a position to re-evaluate its investment plans in the country."
The commissioning phase at the refurbished Olympias processing plant is nearing completion, while commercial production from phase two was planned during the fourth quarter of this year.