Eldorado to freeze investments in Greece’s Skouries project

Eldorado Gold said on Thursday it would freeze investments in its Skouries gold mine in Greece, taking a tough stand in its battle with the country's government.

Eldorado's investment is one of the biggest in Greece and has long been viewed as a test of the country's resolve to attract foreign capital.

In September, the Canadian company threatened to halt new investment in its Olympias, Skouries and the Stratoni mines in the northern Greek region of Halkidiki, unless the government granted it permits and showed a willingness to engage in talks. However, the company soon backed down on that decision.

Eldorado said on Thursday it would move the Skouries project back into “care and maintenance” and reassess its investment in the project upon approval and receipt of required permits.

The miner also said it had started legal action against Greece's Ministry of Energy and Environment.

“Although we have made good progress on the Olympias mine, we require the necessary permits and government support prior to investing further in Skouries,” Eldorado CEO George Burns said in a statement.

“As a consequence we are now taking the necessary legal action to enforce the company's rights while continuing efforts to resolve outstanding matters through ongoing dialogue.” [Reuters]