Work at a mine run by Vancouver’s Eldorado Gold (TSX:ELD) in Northern Greece has been temporarily suspended after Greek authorities determined the company had violated some terms.
According to the country’s energy and environment minister, Hellenic Gold — a subsidiary of the Eldorado — infringed the terms of technical studies.
The Skouries mine has had locals divided since early 2011, when Hellenic Gold was granted approval to mine in the northern peninsula.
Some claim the operation, owned 95% by Eldorado, may hurt tourism and the environment, while others believe it is good news for Greece, as it will generate new jobs and bring hundreds of millions into the struggling economy.
Construction of Skouries mine and processing plant (Satellite photo by Schizophonix | Wikimedia Commons)
Skouries was the flagship project of the last government’s foreign investment drive and, for many, remains a test case that would reveal whether Greece could protect foreign investors despite local opposition.
Eldorado has invested more than $450 million since 2012 on construction and development of the Skouries and Olympias mines in Greece, and had planned to invest another $200 million this year to advance construction at Skouries.
In April, one of Greece's top courts handed a key victory to the Canadian gold miner, rejecting a decision that blocked its plans to build a key processing plant at Skouries.
As of press time, shares of Eldorado Gold were trading at $5.00, a drop of 8.4%.
