Canadian mining company Alamos Gold released a statement on Tuesday that its Dutch subsidiaries would file a 1-billion-dollar investment treaty claim against Turkey over a gold mining project in the country’s northwest region. The company is claiming “unfair and inequitable treatment.”
“The claim will be filed under the Netherlands-Turkey Bilateral Investment Treaty and is expected to exceed 1-billion-dollars, representing the value of the company’s Turkish assets,” said Alamos Gold its statement.
The dispute between the miner and the Turkish state is over the Kirazli gold mine. Alamos Gold has accused the Turkish government of failing to grant a routine renewal of its mining licenses despite it having fulfilled all legal and regulatory requirements.
“After 10 years of effort and over 250 million dollars invested by the company we have been shut down for 18 months in a manner without precedent in Turkey, despite having received all the permits required to build and operate a mine,” the company’s statement claimed.
The Kirazli mine had been the source of controversy in 2019 when the construction of the mine sparked protests by thousands of Turks, including opposition lawmakers, over claims that the company would use cyanide to extract the gold, poisoning the surrounding soil and water.
The Canadian company has been active in Turkey since 2010. [Reuters]