Hellas Gold, the Greek subsidiary of Canadian Eldorado Gold, has filed an Application of Payment demanding a compensation of 750 million euros from the Greek state for delays in its investment project in Skouries.
Prompt was the reaction by the Greek Energy Ministry that said Skouries was only one of the projects of the company’s investment in Halkidiki and urged the company to submit the necessary guarantees for the gold mining.
In a press release, Eldorado Gold said the Hellas Gold said it was seeking compensation for damages the company has suffered due to delays from delays in the issuance of permits for the Skouries project, including damages for out of pocket costs and loss of profits.
It should be noted that the Application of Payment is a non-judicial request for payment and does not initiate legal proceedings.
George Burns, Eldorado Gold’s President and CEO said, “The Application represents a good-faith attempt to resolve the matter with the Greek State as it relates to costs incurred resulting from permit delays to our Skouries project. Eldorado has always acted in a manner consistent with finding a mutually-agreeable solution to responsibly developing Skouries. We hope that this matter can be resolved in an amicable manner without needing to go down the route of arbitration.”
Prompt was the reaction of the Greek Energy and Environment Ministry making clear to Eldorado Gold that the project in Skouries is only a part of the whole investment of the company in the area.
“In accordance with the agreement, the development of Cassandra Mines is a single investment and therefore a basic precondition for the commence and the operation of the individual projects is that the company presents to the Greek State the guarantees necessary for the realization of the obligation to produce clean metals,” the ministry said in a statement.
“In the context of this position, the ministry examines also the submitted request,” for the compensation, the ministry added.
More on Eldorado Gold investment projects in Greece here.
