Eldorado Gold’s Unspoken Legal Problems in Greece

Eldorado Gold is facing serious and complex legal problems in Greece: the greek government is taking Eldoradο to arbitration. The company has prevented any of this  information from leaking to the international press. Investors have been kept completely in the dark and are not even aware that an arbitration processthat could have serious implications for their investment is under way.

greek-minister-halts-work-at-eldorado-gold-mine

From the point of view of the anti-mining movement, the goal of the arbitration is to “legitimize” Eldorado that has been found to be in violation of all permits and its contract with the state.

Both Εldorado and the government want to keep all this quiet until a new agreement is finalized and it is all “legal” again. Please share.

 


Background

In the numerous press releases and reports that it published over the past year, Eldorado Gold Corp. claims that its Skouries and Olympias projects in northern Greece are progressing smoothly. However, having failed to overcome the opposition of the local community, the company is now also facing a series of legal challenges and obstacles that are kept away from the shareholders’ eyes.

In a decision published on 11 April 2017, the Greek government announced its intention to take Eldorado Gold to arbitration over a possible breach of contract[1]. The issue at stake is to determine whether Eldorado is actually able to fulfil its contractual obligation to produce pure valuable metals in Greece in light of the Ministry of Environment’s recent rejection of the technical study pertaining to the metallurgy component. This ministerial decision, which puts in jeopardy Eldorado’s entire investment plan, can only be overturned by Greece’s highest administrative court. Eldorado filed an appeal on 28 December 2016; however, no date has been set for the case to be examined at the time of writing.

In early 2012, Eldorado Gold acquired the gold, silver and copper mines of Halkidiki. This project was initiated by Eldorado subsidiary Hellas Gold in 2004, with a commitment to not only exploit the mines but also construct and operate a metallurgy plant to produce pure valuable metals. This commitment was reiterated under the terms of the environmental approval issued by the Hellenic Ministry of Environment & Energy in July 2011, which covers the four inseparable components of the Halkidiki mines project. The establishment of a metallurgical plant is therefore a central obligation of Hellas Gold, both under the terms of its contract with the Greek state and the environmental approval.

Hellas Gold chose to employ the “flash smelting” pyrometallurgical technology, developed by the Finnish company Outotec. The Greek authorities approved this technology on environmental grounds in 2011 and defined its use as a “necessary precondition” for the whole project. However, five years on, Hellas Gold and Outotec failed to demonstrate that flash smelting could be successfully applied under the conditions and design parameters specified in the environmental study. This resulted in the rejection of the technical plan for the copper-gold metallurgical unit by the Ministry of Environment on July 5, 2016. A remedy petition filed by Hellas Gold in September 2016 was met again with a final rejection on November 2, 2016.

This rejection was not unforeseeable. The Ministry’s technical authority noted as early as 2010 that, due to the high concentration of arsenic in the ore from Halkidiki, Hellas Gold was proposing a non-standard application of flash smelting that raised questions as to its applicability. Six years on, the Ministry of Environment concluded that, in the case of these particular high-arsenic ores, flash smelting would generate extremely large volumes of toxic off-gasses and cause multiple technical issues in downstream processing. Eldorado is thus currently at an impasse, technically and legally: the technology on which the entire investment plan is dependent is simply not applicable for technical and environmental reasons, yet under the terms of its environmental approval Eldorado cannot opt for a different technology.

Eldorado’s management has failed to inform investors on any of the above facts and matters. Since July 2016, there have been at least seven press releases and corporate presentations by Eldorado that refer to the development and operational status of the Greek projects. However, these do not include a single mention of the above issues and their possible implications for Eldorado’s activities in Greece.

Source: antigoldgr.org


[1] https://diavgeia.gov.gr/decision/view/9%CE%A8%CE%A9%CE%A3%CE%97-%CE%984%CE%96

See also Unofficial translation from Kathimerini: Greek state resorts to arbitration, again blocking Eldorado’s investment

And Greece to seek arbitration over Eldorado’s gold mine investment 

 

Guardar

Guardar

Guardar

Guardar

Related Posts

Press Release: Frontline defenders travel to London to counter Mines and Money conference between 25-30 November
The secret of your smartphone

The secret of your smartphone

  • Written on: 22 November 2017
  • Posted under: Videos
Panorama Mine: Mapping French mining projects
Members of YLNM have expressed their solidarity with Jesús Cruz, a member of Stop Uranio from Spain
For the Right to Resist !!! International Solidarity with blogger and Stop Uranio Activist from Salamanca, Spain
Take Action: Support Galician YLNM members’ campaign to investigate the San Finx mine
EL CAMPO CHARRO EN LUCHA POR LA INTENCIÓN DE UNA MULTINACIONAL AUSTRALIANA DE ABRIR UNA MINA DE URANIO A CIELO ABIERTO
Calling Australian Allies: Help Stop Uranio halt a uranium mine in Salamanca, Spain
Trun: Bulgarian town backs gold mining ban in referendum
Eldorado Gold’s Unspoken Legal Problems in Greece
“Druridge Bay is not theirs to take, but ours to keep.”
In Photos: Solidarity in action at rally to stop Druridge Bay coal mine
We stand in solidarity: South African and UK communities unite to reject plans for Druridge Bay open-cast coal mine
Open Letter: South African communities ask UK planners to reject new open-cast coal mine
Call to action: Support campaigners who shut down the UK’s largest coal mine!
The European Parliament insists on a cyanide ban in mining
More than 100 organizations around the world say no to mega-mining in French Guiana
Movie-like intimidation and obstruction tactics at Certej in Romania
Resistance, exchange, (post)extractivism: YLNM Coordinators meet in Galicia- in photos
Agua, tierra, derechos y alternativas
Un comité de expertos internacionales visitó el entorno de San Finx
YLNM joins ContraMINAcción to celebrate third Meeting on Impacts of Mining, in Galicia
Gold-digging with investor-state lawsuits: Canadian mining corporation sues to force Romanians to accept toxic Roşia Montană goldmine
Selkie: Restoring land, water and hope in the Finnish Boreal
The Sami’s Näätämö River Revival: Hope in the midst of Finland’s extractive tsunami
#AxeDrax: Campaigners unite for climate justice against coal and bioenergy-fueled deforestation
REPORT: The New Colonialism: Britain’s scramble for Africa’s energy and mineral resources
‘Responsible Extractives Summit’: Sick Joke or Serious Indictment of Industry?
Mining, Murder and a British Millionaire: Protestors stand in solidarity with South African communities opposing mining
#StandWithAmadiba

#StandWithAmadiba

  • Written on: 11 May 2016
  • Posted under: Videos
Attack to Common Woodland in Galicia
Sløtface: Anti-mining Activist Punk Rockers

Sløtface: Anti-mining Activist Punk Rockers

  • Written on: 28 April 2016
  • Posted under: Videos
New Forest ‘Land Grab’ Act Passes in Finnish Parliament
Take Action to prevent the destruction of Sami Forest Lands in Finland
Finland: State Forestry Company About to Seize Control of Sámi Indigenous Key Old Growth Forests
How to define “responsible mining”? A critical review of a French initiative by EWB Extractive systems
‘People of Artvin are against mining because their way of life is threatened’
Romanian civil society wins key victory against proposed gold mine
Police teargas locals protesting new gold mines in Artvin, Turkey
No coal, no fracking: end fossil fuel production on UK soil by 2020!
Máis minas contaminantes para Galicia: alerta social
Ditch coal now! The global destruction caused by the UK’s coal power generation
Call for Abstracts and Invitation to Workshop – An Interdisciplinary Approach to the Negative Impacts of Mining
Ditch Coal

Ditch Coal

At the Coalface: Ten more years of UK coal burning a lifetime on the ground
Tesouro de Corcoesto

Tesouro de Corcoesto

  • Written on: 15 January 2016
  • Posted under: Videos
A message of solidarity to communities fighting the Skouries Mine (Halkidiki)
Romanian village blocks Canadian firm from mining for gold
Yes to Life and Climate Justice, No to Mining and Climate Catastrophe! (EN/FR)
Empty promises: G20 subsidies to oil, gas and coal production
Petition: Tackle the deadly trade in conflict minerals!

Petition: Tackle the deadly trade in conflict minerals!

  • Written on: 14 October 2015
  • Posted under: Campaigns
UK: Community opponents of planned Field House coal mine buoyed by international solidarity
Coal Map of Europe

Coal Map of Europe

Armenian Villagers Up In Arms Against New Mining Project
Lignite – Power Source of the Past?

Lignite – Power Source of the Past?

  • Written on: 11 September 2015
  • Posted under: Videos
Our Resistance, Our Hope: Unity Statement of the International People’s Conference on Mining
Stopping Eldorado Gold – Mining struggle in Greece
The end of an affair! Gabriel to sue Romania over Rosia Montana via an ISDS case
Achievements of the Global Day Against Mega Mining
Strengthening anti-mining ties in southern Europe
22 July 2015 – Global Day of Action Against Mega Mining- DÍA MUNDIAL CONTRA LA MEGAMINERÍA
Invitation to FanFest and the Rosia Montana Forum
‘300 Cerattepeli’ stand against mining company
Fracking application rejected by Lancashire county council
Mining on Top Africa: London Summit Disrupted
Victory as Councillors take a stance against Welsh opencast coal mining
Africa-UK Civil Society Letter to the Mining on Top Africa: London Summit
PRESS RELEASE: African Civil Society Challenges London Mining Conference
UK Coal Far From Dead: Bradley Coal Mine approved despite community resistance.
Sámi People and allies force Irish mining company out of their territory
I Couldn’t Believe My Eyes

I Couldn’t Believe My Eyes

  • Written on: 08 April 2015
  • Posted under: Videos
In Pictures – Yes to Life No to Mining raises the voice of African civil society against the extractives
Let them eat carbon! The corporate plan to cook Africa in its own fossil fuels
African civil society and global allies challenge Chatham House conference on ‘Extractive Industries in Africa’
Divestment, in Solidarity: NAPE Uganda reach out to London’s divestment campaigners
CONDEMNED: Russian Coal Mining and Shor Displacements

CONDEMNED: Russian Coal Mining and Shor Displacements

  • Written on: 05 February 2015
  • Posted under: Videos
In Solidarity – En Solidaridad

In Solidarity – En Solidaridad

  • Written on: 11 December 2014
  • Posted under: Videos
Mining An Imminent Threat to Local and Indigenous Communities of European North
Communities of Falkirk Join Together To Resist Extreme Energy Initiatives
Local Communities Resist Gold Mining in Corcoesto, Galicia