BUSINESS

Eldorado Gold seeks a new plan

CHRYSSA LIAGGOU

TAGS: Privatizations, Business

Eldorado Gold is seeking to make substantial changes to the contracts for the mines in Halkidiki, while searching for a strategic investor that will help share the cost of an investment plan that is proving too expensive for the Canadian company to undertake on its own.

This development generates fresh uncertainty in the troubled investment of the goldmines in Central Macedonia, though this time it is attributed to the owner company, which appears unable to finance the investment plan the Greek state approved in 2006 in the context of the concession contract of 2004.

On November 22, 2019, Hellas Gold, the local subsidiary of Eldorado Gold, submitted to the Environment Ministry a new investment plan whose approval requires the amendment of the 2004 concession contract. This new plan, sources say, was submitted in the context of a dialogue with the government that started last July and continues on multiple levels so as to facilitate the implementation of the investment while safeguarding the state’s interests. The same sources speak of “tough negotiations” with the Canadians who set terms that limit the added value of the project for the state.

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