🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

UPDATE 3-Eldorado gets more Greek mine permits, but standoff persists

Published 2017-09-15, 10:53 a/m
© Reuters.  UPDATE 3-Eldorado gets more Greek mine permits, but standoff persists
ELD
-

* Greece concludes licensing for Olympias mine development

* Eldorado wants more permits before reassessing freeze

* Greece says outstanding permits are part of an arbitration (Adds stock movement, analyst comment)

By Angeliki Koutantou and Susan Taylor

ATHENS/TORONTO, Sept 15 (Reuters) - Greece granted Eldorado Gold Corp ELD.TO EGO.N two remaining permits on Friday for its Olympias mine, the government's latest attempt to defuse a standoff with the Canadian miner, which has threatened to suspend investment in the country.

After Eldorado warned on Monday that it could halt new investment starting Sept. 22, blaming years-long permit delays and a lack of information on an upcoming arbitration, Greece issued key mine permits on Wednesday and detailed arbitration proceedings on Thursday. the Vancouver-based miner continues to insist that it will only reconsider its investment plans after receiving a outstanding permit for a plant in Skouries and the government shows a willingness to engage in constructive talks. is another positive step forward. However, we are still waiting on the other matters, which we continue to believe can be resolved through good faith negotiations," Eldorado Chief Executive George Burns said in a statement.

Eldorado shares dipped about 2.4 percent in early trade on Friday, to C$2.83 in Toronto and $2.32 in New York, mirroring broad declines for gold miners. The stock had soared more than 20 percent this week. are of the view that Eldorado's recent decision has motivated the European government to scrutinize Greek policy regarding foreign investment, specifically regarding the company," BMO analyst Andrew Kaip said in a note to clients.

"We see this as a positive event given that the company has invested an additional (approximate) $1 billion in the country since its $2 billion acquisition in 2012."

Eldorado's investment in northern Greece is among the biggest since the country's debt crisis began in 2009 and has long been viewed as test of its resolve to attract foreign capital.

The miner spent nearly $2 billion in 2012 to purchase the Skouries mine along with Olympias and Stratoni projects in Greece.

But differences have dragged on, notably over compliance with environmental regulations, with local communities divided over Eldorado's projects.

Workers fear job losses if the dispute is not resolved, while others worry Eldorado's development plans will destroy the environment and tourism industry.

On Friday, the energy ministry published approval of Eldorado's technical study to shut down an old Olympias mine, and a installation permit for a paste plant there, making the project fully operational.

Energy Minister George Stathakis said in parliament Friday that no licences will be issued for Skouries before arbitration begins.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.