by Maria Spiliopoulou
ATHENS, Sept. 11 (Xinhua) -- Citing long delays in getting the necessary operating licenses, which have been withheld by the Greek state due to contractual obligations that had not been met, Canadian gold mining company Eldorado Gold announced Monday it would suspend its activities in Greece.
In a press release, the company said that its Greek subsidiary Hellas Gold would cease work at its three gold mines in northern Greece this September and dismiss 90 percent of the 1,100 local employees should a solution not be found.
However, according to the contract between Hellas Gold and the Greek state, the company agreed to commitments, such as ensuring there would be no negative environmental and ecological footprint that would affect the health of residents and the economic activities of the wider region, and dozens of investments, especially in the tourism sector, according to Greek environment and energy minister George Stathakis.
The Greek official said the environmental licensing system included detailed procedures for each individual activity in order to comply with current European and national legislation, and the company had not submitted adequate investment plans.
On Sept. 21, a temporary license for operations at Olympiada mine expires, while several permits are pending, said the company's chief executive officer (CEO) George Burns at a press briefing in Athens on Monday, calling on the Greek government to speed up the licensing procedure.
Unless a solution is found, all operations, with the exception of some maintenance works, would stop as of Sept. 22, he said.
Eldorado invested 2 billion U.S. dollars to acquire the mines in 2012 and an additional 1 billion U.S. dollars in various projects, he noted.
The CEO expressed hope that a solution would be reached, warning that otherwise the company intended to use "every legal means in Greek courts and international arbitration," Greek national news agency AMNA reported.
"It is rather clear that the company is not used to operating in European countries," environment and energy minister George Stathakis responded in a press release.
The Greek government said it welcomed all law-abiding investments in the country.
"The government welcomes all investments respecting the law," Christos Mantas, the parliamentary speaker of the ruling Syriza party told local SKAI TV.
However, "Greece does not need investments which may lead to environmental destruction," defense minister Panos Kammenos added.
Eldorado argued that all necessary measures had been taken to ensure the protection of the environment.
Locals have held numerous protests against the investment in the past five years over environmental concerns.
Last year the company also warned it would suspend operations in one mine amid protests, again citing delays in obtaining permits.
In order to resolve the issue, the government referred to the State Council, Greece's supreme administrative court, which was expected to launch an arbitration process later this week.
