Canadian mining company suspends work at Greek site, lays off 600

ATHENS, Greece -- Canadian mining company Eldorado Gold says it is suspending work at a site in northern Greece and laying off 600 workers following protests by local residents and a spat with the country's government.

See Full Article

The Vancouver-based company (TSX:ELD) says it's suspending operations at a gold mine at Skouries, one of four major Greek sites where Eldorado is involved through its subsidiary Hellas Gold.

Eldorado Gold CEO Paul Wright said a further 500 jobs at another project were also likely to be cut later in the year.

Wright accused the government of using the mining project as a "political toy" but insisted the company had no plans to pull out of Greece.

Eldorado says it has invested more than US$700 million since 2012, including taxes to the Greek government, for development of the Skouries and Olympias projects.

Elected a year ago, the left-wing government has expressed support for resident protest groups near Skouries who oppose the project on environmental grounds.

There have also been both pro-mine protests, including one in April 2015 that attracted an estimated 4,000 supporters of the Skouries mine that caused police to shut down major roads in Athens for several hours.

The company announced Monday, after North American stock markets closed, that it would be making significant changes to its investment plans in Greece, including a suspension of work at the Skouries project. It says it would spend about US$1 million per month to maintain the site's assets and safeguard the environment.

Eldorado also warned that Phase 2 of its Olympias underground mine, which is scheduled to begin producing ore by the first quarter of 2017, could also be suspended if it doesn receive a necessary permit by the end of March. Hellas Gold currently employs 500 people at that site.

And its Stratoni Mine, which currently has about three years of known reserves, is under review "in light of the current investment climate in Greece." The mine requires additional development and drilling that would cost US$25 million over the next three years, the company said.

Eldorado says it will provide further plans for 2016 on Jan. 25.

With files from The Canadian Press



Advertisements

Latest Economic News

  • Why do you need a pet insurance, right here, right now

    Economic 24news
    Many Canadians would consider their pets as a part of their immediate, granular, family. Although some professionals think it’s not healthy, that’s the way life is in the twenty first century; There is a steep decline in the birth rate globally, with Japan leading the pack, and pets are filling in the void.
  • Why Trump's desire for a protectionist wall threatens more than NAFTA: Don Pittis

    Economic CBC News
    Completing Donald Trump's Mexican border wall seems as far away as it ever did. But some Canadian trade experts fear the protectionist president may be succeeding in building trade walls that could weaken the entire global economy. Source
  • Lower U.S. business taxes, uncertainty over NAFTA complicate Trudeau's investment pitch in Davos

    Economic CBC News
    One of Canada's central aims at this year's World Economic Forum is to convince global business leaders that Canada is still an attractive place to invest. It is a challenge made all the more difficult because of the uncertainties posed by ongoing NAFTA negotiations and recent cuts to U.S. Source
  • Amazon to debut store without checkout in downtown Seattle

    Economic CTV News
    SEATTLE - Amazon employees have been testing it, but is the public ready for a cashier-less store? More than a year after it introduced the concept, Amazon is opening its artificial intelligence-powered Amazon Go store in downtown Seattle on Monday. Source
  • Asian stocks mixed after U.S. government shutdown

    Economic CTV News
    BEIJING - Asian stock markets were mixed Monday after global investors shrugged off the latest U.S. government shutdown. KEEPING SCORE: The Shanghai Composite Index rose 0.2 per cent to 3,495.40 while Tokyo's Nikkei 225 lost 0.2 per cent to 23,764.96. Source
  • Amazon to debut cashier-less store in downtown Seattle

    Economic CTV News
    SEATTLE -- Amazon employees have been testing it, but is the public ready for a cashier-less store? More than a year after it introduced the concept, Amazon is opening its artificial intelligence-powered Amazon Go store in downtown Seattle on Monday. Source
  • 'Archaic' liquor laws in B.C. hurt consumers, whisky distributor says

    Economic CTV News
    VANCOUVER -- An Alberta-based whisky distributor says "archaic" liquor policies in British Columbia are limiting the range of products consumers can access. Robert Carpenter with the Scotch Malt Whisky Society says B.C. bars have long skirted rules that prevent them from buying unique products at private liquor stores that aren't carried at government stores. Source
  • With a deep tech talent pool, Toronto could hit Amazon's 'sweet spot' with bid for new HQ

    Economic CBC News
    Toronto faces stiff competition in its bid to court Amazon, but some Canadian tech experts agree that among the 20 cities short-listed as potential locations for the company's second headquarters, Toronto might just hit "the sweet spot. Source
  • HBC's Lord & Taylor to lay off 200 in U.S. operations move

    Economic CTV News
    WILKES-BARRE, Pa. -- Lord & Taylor has announced that it will be laying off about 200 people at a Pennsylvania distribution centre as it moves some operations to a new location about 80 kilometres away. Source
  • Four things to watch for in the Canadian business world in the coming week

    Economic CTV News
    TORONTO -- Four things to watch for in the Canadian business world in the coming week: Time to have "the talk"? Alimentation Couche-Tard's hosts its first-ever investor day on Monday. The large convenience store chain, which operates as Circle K outside Quebec, recently said it hasn't given up hope of selling cannabis as some Western Canadian provinces turn to the private sector for over-the-counter sales. Source