Eldorado gets arbitration win against Greek governmentGreek arbitration court says Eldorado’s metallurgical plant study was not deficient
Greek arbitration court says Eldorado’s metallurgical plant study was not deficient
By Jordan Faries
April 04, 2018
An aerial view of Eldorado's Skouries project. The company reported last week that it had filed an updated technical study for the project that will reduce its footprint by 40 per cent. Courtesy of Eldorado Gold
Eldorado Gold announced on Thursday it had received a “positive” court ruling from an arbitration panel regarding an ongoing dispute with the Greek government.
The ruling rejected the government’s argument that the technical study for the Madem Lakkos metallurgical plant – used to treat concentrates from Eldorado subsidiary Hellas Gold S.A.’s Olympias and Skouries projects – was deficient and in breach of the transfer contract signed by the company in 2003 when it purchased Olympias, Skouries and the Stratoni mine. The study for the plant was initially submitted in 2014.
“We believe this decision provides a foundation to allow us to advance dialogue with the Greek government in order to define a mutually agreeable and clear path forward for our Kassandra investments,” Eldorado president and CEO George Burns said in a statement.
Eldorado said it would “continue to evaluate the decision and consider next steps with respect to its Kassandra investments.”
Last June, the Greece’s environment ministry announced plans to take Eldorado to arbitration court, but did not release any further details at the time. It formally initiated the process in September, just days after the company announced plans to suspend its Greek operations on Sept. 22 unless certain conditions were met. After receiving several permits, details of the arbitration, and beginning “constructive dialogue” with the government, Eldorado said it would continue operations.
Last week Eldorado reported it had filed an updated technical study for the Skouries project that Burns said will reduce the project’s footprint by 40 per cent by employing dry stacked tailings handling.