Eldorado Gold to suspend mine development projects in Greece

12 January 2016 (Last Updated January 12th, 2016 18:30)

Canada-based Eldorado Gold has announced the suspension of most of its mine construction and development projects in Greece, citing delays by the government in granting permits.

Canada-based Eldorado Gold has announced the suspension of most of its mine construction and development projects in Greece, citing delays by the government in granting permits.

Eldorado's Greek subsidiary Hellas Gold requires the approval of various routine permits and licenses from various government agencies to complete the construction and development of its projects in Halkidiki.

Hellas Gold will suspend mining activities at its Skouries project, which has had an investment of more than $300m to date.

The company has also threatened to suspend all construction and development activities at its Olympias project should the ministry fail to issue the installation permit by the end of 2016's first quarter.

"The company has threatened to suspend all construction and development activities at its Olympias project should the ministry fail to issue the installation permit."

At present, around 500 people are working at the project.

All necessary documentation was submitted to the ministry in December 2015 to obtain the permit, which is expected within 60 days of submission.

The company is also considering to halt future expansion activities at its Stratoni mine, which has around three years of life left.

Development activities at the Perama Hill and Sapes projects also have come to an end.

Eldorado Gold president and CEO Paul Wright said: "The projects have considerable potential with demonstrated economic and social benefits.

"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.

"Since 2012, we have created approximately 2,000 direct jobs in the country and invested in excess of $700m towards development of the Skouries and Olympias projects, including tax payments in excess of €120m to the Greek Government."