Eldorado receives formal arbitration notice from Greek government

VANCOUVER – Eldorado Gold Corp. (TSX:ELD) says it has received a formal notice from the Greek government initiating an arbitration hearing regarding the company’s Madem Lakkos metallurgical plant.

The notice alleges a technical study for the plant is deficient and is in violation of a transfer contract and the environmental terms of the project.

Eldorado said it is confident the study is “robust and consistent with the transfer contract, the business plan and the approved environmental terms of the project.”

The company is embroiled in a fight with the Greek government over its gold mining operations in the country.

Eldorado said earlier this week that it planned to suspend investment at its mines in Greece following what it said were delays in the issuing of permits and licenses.

It received two key permits related to its operations in Greece on Wednesday, but the company said several issues remain outstanding.

Eldorado chief executive George Burns said the company has sought a constructive relationship and dialogue with the Greek government.

“Nevertheless, we will vigorously defend our rights and employ all legal means at our disposal,” Burns said in a statement.

“We are confident in the completeness of our efforts in Greece, the rigour of our engineering and the vast potential benefit of these projects for regional and national stakeholders.”