UPDATE 1-Eldorado Gold to suspend operations in northern Greece

(Adds details, background)
Aug 20 (Reuters) - Canadian miner Eldorado Gold Corp
ELD.TO said on Thursday it would suspend all mining and
development activities in the Halkidiki region in Greece after
the Greek Energy Ministry on Wednesday revoked approvals for
technical studies in the region.
Eldorado said its Greek arm, Hellas Gold SA, is taking legal
action against the ministry's decision, including the filing of
an injunction request before the Greek Supreme Court.

The company said it completed tests for the Olympias project
at a smelting facility in Finland, but the Energy Ministry
contended the tests should have been done at site in Halkidiki,
and revoked approvals to perform technical studies.

The tests in Finland were part of technical studies that
formed the basis of other permits needed to develop the Skouries
and Olympias projects, Eldorado said.
Eldorado said it would be forced to suspend the majority of
the 2,000 people it employs directly or through contractors in
Halkidiki for up to three months and would have to lay them off
if its permits were not reinstated.
The project in Greece's Halkidiki region includes gold mines
in operation and two factories under construction that will
enable the company to process gold and other minerals in Greece.
The suspension, effective from next week, would affect
Hellas Gold's Stratoni mine as well as projects in Skouries and
Olympias.
"Eldorado cannot and will not continue to allocate
expenditures to our projects in Greece while the Ministry of
Energy is openly hostile to our activities," the company's Chief
Executive Paul Wright said.
The $1 billion project is considered a test case for
Greece's ability to attract foreign investment to help revive
its economy, but it has been beset by problems due to opposition
by local residents on environmental grounds.
Eldorado took over the project in 2012, promising to invest
$1 billion over the five years as part of a plan to eventually
source up to 30 percent of its global gold production in Greece.