Eldorado Gold takes writedown of up to $1.6B on Greek assets

Eldorado Gold is taking a writedown of $1.2 to $1.6 billion in 2015 on its Greek assets, after being forced to slow production and development at mines in that country.

Gold miner has licence suspended at Greek mine and is fighting in court

A bulldozer works at the site of a gold mine in Skouries village, northern Greece. Canadian mining company Eldorado Gold suspended work at the site and laid off 600 workers in January. (Associated Press)

Eldorado Gold is taking a writedown of $1.2 to $1.6 billion in 2015 on its Greek assets, after being forced to slow production and development at mines in that country.

A government decision revoked a mining permit on environmental concerns prompting a political standoff between local miners who want to work and environmentalists who are concerned about the project.

Eldorado Gold CEO Paul Wright said the company would like to continue development on the site.

"Looking at Eldorado's long-term plan, the company remains committed to its portfolio of Greek assets and the realizable benefits to all of the stakeholders involved," he said in a statement.

Its Hellas Gold unit is fighting in court to get the go-ahead on projects.

Construction and development activities at the Skouries Project which includes a processing plant have been suspended and the company says it will suspend its Olympias mining project unless it receives approvals by March.

In a news release Monday, Eldorado estimated 2015 gold production at 723,532 ounces, more than expected, at an average cash cost of $841 per ounce. The company said it is "remaining financially prudent" on new development as gold prices remain low.

Eldorado's year-end financial statements are to be released on March 23.