EUROZONE-GREECE/GOLD MINE Greece halts activity at Canadian-run gold mine - minister

Record ID: 142875

  • Title: EUROZONE-GREECE/GOLD MINE Greece halts activity at Canadian-run gold mine - minister
  • Date: 19th August 2015
  • Summary: ATHENS, GREECE (FILE - APRIL 2015) (REUTERS) VARIOUS OF PRO-GOLDMINE MINE WORKERS FROM SKOURIES MINE IN THE HALKIDIKI REGION OF NORTHERN GREECE, CARRYING BANNERS AND MARCHING TOWARDS ENERGY MINISTRY VARIOUS OF MINE WORKERS CARRYING BANNER READING (Greek): "THE REAL RESIDENTS OF HALKIDIKI ARE IN FAVOUR OF THE MINES"
  • Embargoed: 3rd September 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA9DV5AH1I90YGHHILEV4224ZL8
  • Aspect Ratio: 16:9
  • Story Text: Greece's energy minister said on Wednesday (August 19) the government is halting activity at a Canadian company Eldorado Gold's gold mine operations in northern Greece because it has violated some terms.
    The investment by the Vancouver-based company in the Halkidiki region has been controversial and seen as a test case for Greece's will to attract foreign investment after years of austerity-induced recession.
    "We are recalling the technical studies, which will result in the temporary halting of the company's operations at Skouries mine. I would like to say that for the government, investments are welcome and necessary but the companies must respect the terms they have committed to so that the environment and the public good are not harmed," Greek energy minister, Panos Skourletis, told reporters after meeting with Prime Minister Alexis Tsipras.
    He did not elaborate on what terms the company had violated.
    Canadian miner Eldorado has spent about $400 million at a gold mine in Skouries in the forest of Halkidiki since 2012 and wants to invest another $700 million by 2017 to develop the project. But without the plant, its investment, a test case for Greece's willingness to attract foreign funds, is in doubt.
    Two months after taking office, Tsipras's leftist government revoked Eldorado's authorisation to build the plant.
    Thousands of mine workers descended upon the capital to protest in favour of the mines.
    In April Greece's top administrative court rejected a 2013 decision by local authorities blocking Eldorado Gold's plans to build a processing plant in the area, ruling that the municipality had no legal ground.
    Skourletis also addressed the spectre of snap elections as Tsipras has yet to make up his mind on calling early elections following a rift in the ruling party over the country's new bailout deal.
    "Many rumors are going around, there are a number of thoughts on the matter, and I think that in the coming hours, we will all know more," said Skourletis.
    Greece has already been bailed out twice since 2010 by the euro zone and International Monetary Fund. Tsipras secured the third programme by making commitments to impose reform and austerity policies that are so onerous that a sizeable number of lawmakers from his radical left Syriza party rejected the 86 billion euro deal in parliament.
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