Eldorado Gold confirms Hellas Gold will undertake actions to suspend mining and development activities in Halkidiki

Gazzetta team 21 Αυγούστου 2015 - 12:53

Eldorado Gold confirms that Hellas Gold, a Greek subsidiary of the Company, will undertake actions to suspend all its mining and development activities in Halkidiki, northern Greece, commencing the week of August 24, 2015. The suspension, which will affect Hellas Gold's Stratoni Mine as well as the Skouries and Olympias projects, is a direct result of the revocation by Greece's Ministry of Energy of the technical studies of its projects in Halkidiki (as described in Eldorado's press release dated August 19, 2015).

Hellas Gold is taking legal action against the decision of the Ministry of Energy, including the filing of an injunction request before the Council of State, Greece's Supreme Court on administrative and environmental matters. At this point, Eldorado is unable to provide guidance with respect to timing of any potential court decision.

Hellas Gold will continue to perform essential environmental protection works at its three sites in Halkidiki – Stratoni, Skouries, and Olympias – in order to safeguard the environment and the public interest. Hellas Gold will, however, be forced to suspend the majority of its employees in Greece for a period of up to three months on terms in accordance with Greek labor legislation. Hellas Gold would be left with no option but to terminate employees if the permits were not reinstated. Currently, Hellas Gold and its contractors employ 2,000 persons directly in Halkidiki. Eldorado estimates that 5,000 direct and indirect jobs have been created in Greece as a result of its mineral investment in the country.

Paul Wright, Chief Executive Officer of Eldorado, commented: "This unfortunate outcome is detrimental to the Company, Hellas Gold, our Greek employees, contractors, community supporters, and the Greek society. However, 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, as evidenced by recent Ministry decisions. We sincerely hope to resume our activities in Halkidiki at some point in the near future – preferably through constructive engagement with the Ministry of Energy rather than a court decision."