Greece grants Eldorado permits for gold mine

Construction of processing plant at Skouries. (Image courtesy of Eldorado Gold)

Eldorado Gold (NYSE: EGO) confirmed on Tuesday that it has recieved installation permits for its Skouries project and its Olympias mine from the Greek Ministry of Energy and Environment.

Vancouver-based Eldorado has two operating mines and two development projects in northern Greece but has struggled with delays at Skouries for years.

Eldorado halted construction in November 2017 at Skouries, a high-grade gold-copper porphyry project which has reserves of 3.7 million ounces of gold and 1.7 billion pounds of copper, citing mainly environmental permit delays.

Its planned investment in Greece has been viewed as one of the biggest in the country in years.

Skouries has reserves of 3.7 million ounces of gold and 1.7 billion pounds of copper

The permits allow for the installation of mechanical and electrical equipment at the flotation plant to be completed and installation of additional surface facilities. Eldorado said it intends to carry out certain construction activities that were suspended in 2017, including building the mill enclosure once permitted, to protect the plant assets.

Eldorado is working with the Greek government to achieve the necessary conditions required to restart full construction at the Skouries project, collaborating on a mutually acceptable path forward to build safe, modern, world-class operations in Greece, the company said.

“We are greatly encouraged with the engagement we’ve had to date with the Greek state and look forward to working constructively with the relevant Ministries,” George Burns, CEO of Eldorado Gold, said. “We believe the Skouries project offers significant value and benefits to the local communities and the Greek economy, while adhering to the highest environmental standards.”

Capital expenditure for asset protection works is estimated to be approximately $5 million.