Greece says Eldorado must resume mining operations before talks on investment can continue

ATHENS, Jan 14 (Reuters) - Greece has asked Canadian miner
Eldorado Gold Corp ELD.TO to reverse its decision to halt much
of its Greek mining operations and safeguard jobs as a condition
for the two parties to continue talks on the country's biggest
foreign investment.
The Vancouver-based miner has been in a dispute with the
Greek government after Energy Minister Panos Skourletis in
August revoked the company's permit to further develop its
Skouries mine in a forested area of northern Greece on
environmental concerns.
The case is widely seen as a test of the leftist
government's approach to foreign investment.
On Monday Eldorado said it would suspend construction at the
Skouries project, putting more than 600 jobs at risk. It also
warned it would do the same at its Olympias mine, risking
another 500 jobs in northern Greece, if it didn't secure
necessary permits by the end of March.
Skourletis met Eldorado Chief Executive Officer Paul Wright
on Wednesday.
"I told him that a condition for any talks from now own is
the company taking back its decision," the minister said after
the meeting.
"We can't discuss while being blackmailed," he said.
Eldorado went to Greece's top administrative court to annul
the government's decision to revoke its mining permit and a
majority of judges in the court ruled in its favour in November,
but the official decision is still pending.
The government has also delayed several other licences
Eldorado needs to develop its projects on the Halkidiki
peninsula.
Greece needs investment to spur its economy but the leftist
government has shown a reticence to allow foreign ownership of
big projects.
Eldorado has created around 2,000 direct and indirect jobs
in Greece, which suffers from a jobless rate of 25 percent, the
highest in the euro zone.
The Canadian company has spent more than $700 million since
2012 when it took over the project on the Halkidiki peninsula
and planned to invest another $1 billion in its quest for gold,
copper and zinc at the Olympias and Skouries sites.