Eldorado Gold in the green after Greek court decision
A decision on Friday by a Greek court going in favour of Eldorado Gold's (TSX:ELD) Skouris mine has bumped the stock up by close to 10 percent.
Shares in the $3.3-billion market cap company gained 9.63 percent at the close of trading in Toronto, following news that the company can temporarily resume mining until a final court ruling is made. It's the most the Vancouver-based global gold miner has advanced in two months.
In August, Greece's energy and environment minister ordered Eldorado to suspend work at the mine, alleging the firm had violated contractual terms.
As a result, Eldorado Gold left about 2,000 employees temporarily out of work, triggering massive demonstrations.
The mine has been a bone of contention ever since Hellenic Gold was granted approval to mine in the forested Halkidiki peninsula, in northern Greece, back in 2011.
Some claim the operation, owned 95 percent by Eldorado, may hurt tourism and the environment, while others believe it is good news for Greece, as it will generate new jobs and bring hundreds of millions into the struggling economy. Eldorado took possession of the mine in 2012 through the acquisition of European Goldfields.
According to the Financial Post, Eldorado has already sunk US$600 million into the project since 2012, and plans to invest another billion at two other sites in Greece.
Eldorado Gold says the copper-gold mine, which began construction in 2013, will operate as an open-pit mine for seven years, at which point operations would move underground for another 20 years.