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    Categories: BusinessGreek news

Eldorado to Freeze Investments in Skouries Gold Mine

Eldorado Gold announced on Thursday it would freeze investments in its Skouries gold mine in northern Greece, taking a tough stand in its long standing battle with the government.

In September, Eldorado threatened to halt new investment in its Olympias, Skouries and the Stratoni mines in the northern region of Chalkidiki, 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 Canadian mining company also said it had started legal action against Greece‘s Ministry of Energy and Environment, with which it has an outstanding duel since the formation of the SYRIZA-led government 2.5 years ago.

“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.”

Theo Ioannou :