Eldorado Gold to place Greek project under care and maintenance

13 November 2017 (Last Updated November 13th, 2017 11:50)

Canadian development and exploration company Eldorado Gold is set to place the Skouries development project in Greece under care and maintenance. 

Canadian development and exploration company Eldorado Gold is set to place the Skouries development project in Greece under care and maintenance.

The move comes after talks fell through with Greece’s Ministry of Energy and Environment (MoE) relating to the development of Eldorado subsidiary Hellas Gold’s Kassandra Mine assets in Halkidiki, northern Greece.

According to the company, the MoE did not issue the amended electromechanical installation permit for the Skouries flotation plant.

The issue regarding the relocation of antiquities at the Skouries site also contributed to the company’s decision.

Eldorado Gold president and CEO George Burns said: “Although we have made good progress on the Olympias mine, we require the necessary permits and government support prior to investing further in Skouries.

“As a consequence, we are now taking the necessary legal action to enforce the company’s rights while continuing efforts to resolve outstanding matters through ongoing dialogue.”

“Although we have made good progress on the Olympias mine, we require the necessary permits and government support prior to investing further in Skouries.”

The company has also resorted to legal recourse to enforce and protect its legal rights.

In the lawsuit, the company has sought judicial protection against the Ministry’s decision not to issue installation permits, claiming delays to the development of the Skouries facilities.

In September, the Greek Government entered arbitration with the company over perceived contractual violations in the technical study for Madem Lakkos metallurgical plant for treating Olympias and Skouries concentrates in the Stratoni Valley.

Once required permits are received, the company will reassess its investment in the Skouries project.

The company was awarded the Olympias operating permit and the modified electromechanical installation permit for the tailings management facility at Kokkinolakkas in September.