Business

Eldorado resumes operations in northern Greece

Eldorado Gold Corp. says it will resume mining and construction work at a controversial gold project in northern Greece after receiving an injunction against a stop-work order.

Mine reopens, construction continues on smelter after Council of State grants injunction

Miners from a gold mine in northern Greece hit their helmets on the ground during a protest outside the Ministry of Development in Athens in April. They took their case to the Council of State which has sided with them and allowed the mine to reopen. (Alkis Konstantinidis/Reuters)

Eldorado Gold Corp. says it will resume mining and construction work at a controversial gold project in northern Greece after receiving an injunction against a stop-work order.

Greece's Council of State issued an injunction in favour of the Labour Centre of Halkidiki and the unions in the Hellas Gold project, who have protested a decision by the Ministry of Energy and Environment to close down the mine and construction on a new smelter.

The gold mine and planned processing centre in the Halkidiki region have led to protests by both environmentalists who want to close down the project and miners and workers who demanded that it stay open.

In August, the Greek government accused Eldorado of violating terms of technical studies and got an order from the Ministry of Energy and Environment to shut down the project.

But the injunction means Eldorado can resume mining and construction activities and bring employees back to work, Eldorado CEO Paul Wright said on Monday.

The Council of State is expected to make a final ruling on the future of the project later this fall, after hearing from parties on all sides.

Vancouver-based Eldorado said it is negotiating with the Greek government over its plans.

"Mining can make an important contribution to the economic recovery of Greece and we wish to work together with the Ministry of Energy in order to generate job opportunities for the Greek people, pay taxes to the Greek Government, and support economic growth through best available environmental, engineering, health, safety, and community engagement practices," the company said in a press statement.

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