Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Eldorado to freeze investments in Greece's Skouries project

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/09/2017 | 03:53pm CEST

(Reuters) - Eldorado Gold said on Thursday it would freeze investments in its Skouries gold mine in Greece, taking a tough stand in its battle with the country's government.

The differences between Eldorado and the government have dragged on for years, mainly over environmental regulations.

Eldorado blames Greece for long delays in issuing necessary permits.

Athens has said the miner violates contractual obligations by submitting a deficient plan to build a metallurgical plant that will process ores mined in Skouries and Olympias. The government has launched an arbitration process in an effort to sort out the standoff.

The arbitration started earlier this month and is expected to last three months, an energy ministry official told Reuters on condition of anonymity.

The ministry will not "comment as long as the arbitration process is ongoing", the official said.

The company's investment is one of the biggest in Greece and has long been viewed as a test of the country's resolve to attract foreign capital.

In September, Eldorado threatened to halt new investment in its Olympias, Skouries and the Stratoni mines in the northern Greek region of Halkidiki, unless the government granted it permits and showed a willingness to engage in talks. However, the company soon backed down on that decision.

Eldorado said on Thursday it would move the Skouries project back into "care and maintenance" and re-assess its investment in the project upon approval and receipt of required permits.

The miner also said it had started legal action against Greece's Ministry of Energy and Environment over its failure to grant it necessary routine permits.

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

"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."

The company is unlikely to be granted permits in Greece until the arbitration process has been resolved, BMO Capital Markets analyst Andrew Kaip said in a note to clients.

(Reporting by Nivedita Bhattacharjee and Angeliki Kountantou; Editing by Anil D'Silva)

Stocks mentioned in the article
ChangeLast1st jan.
GOLD -0.86% 1216.68 Delayed Quote.-5.79%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
01:42pGlobal business coalition, of which tüsİad is a member, has issued a press statement
PU
01:34pUK retail sales growth strongest since 2004 in second quarter, June disappoints
RE
01:33pTSX futures fall on lower oil prices
RE
01:32pTRAKTATBRUDSSAGER - DET INDRE ENERGIMARKED : Kommissionen indbringer Tyskland og Ungarn for EU-Domstolen for ikke at have gennemført den tredje energipakke fuldt ud
PU
01:32pDCLG UK DEPARTMENT FOR COMMUNITIES AND LOCAL GOV : Ministers seek views on shale planning reforms
PU
01:22pADNOC ABU DHABI NATIONAL OIL : Awards Contracts to CNPC Affiliate for World’s Largest Comb...
PU
01:17pCITY OF DACULA GA : July 20 is a Recycle Pick-Up Day
PU
01:17pMINISTRY OF FINANCE OF REPUBLIC OF INDIA : Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified
PU
01:17pCURRENCIES : Dollar Advances, As China's Yuan Drops To 1-year Low
DJ
01:16pNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
Latest news "Economy & Forex"
Advertisement