Greek subsidiary of Canadian mining company Eldorado Gold, Hellas Gold, has received a formal notice regarding withdrawal of key approval required to complete final construction of the processing plant at the Skouries Project.
The notice from the Greece’s Ministry of Productive Reconstruction, Energy and Environment indicates that the ministry is conducting an internal review process and may reverse its decision upon completion of the review.
The ministry has not stipulated any timing to complete the review process.
Eldorado Gold chief executive officer Paul Wright said: “We have 2,000 people working directly for us and our contractors in Greece and are making a significant contribution to the economy of the country during challenging times.
“Once these two mines reach commercial production, Hellas Gold will become one of Greece’s top exporters.”
“Since 2012, we have invested in excess of $450m on the construction and development of two mines in Greece, Skouries and Olympias. Once these two mines reach commercial production, Hellas Gold will become one of Greece’s top exporters.”
According to the company, funds invested in Greece have been used for payments to Greek stakeholders to date.
Earlier in this year, the company announced its plan to invest $310m on the development of Skouries and Olympias in 2015.
The Ministry of Energy’s recent decision may force the company to reconsider its investment plans for Greece, if not reversed in a timely manner.
The company believes that the ministry’s decision has no legal basis and will act to protect its legal rights if required.
Eldorado Gold said the revocation of the approval has no material impact on the construction schedule of the Skouries Project at the moment.