ELD/Hellenic investment plan review in Halkidiki proceeds 01/13/2020 11:57 AM
Review of its investment plan in Halkidiki proceeds Hellenic Gold. Verticalization, investment sustainability and local goodwill are the triptych of the new project.
At the heart of discussions between the government and Hellenic Gold is the revised plan of the company's investment in Halkidiki.
The Canadian multinational subsidiary Eldorado Gold has already prepared a new investment plan following the recent (September 2019) settlement of pending licenses in Skouries and the Olympics.
Hellenic Gold's administration (A.K.A. Eldorado) has since stressed the need to revise its business plan, citing developments in the country's business environment, given that the first contract with the Greek State was signed in 2004 and the investment plan was approved in 2006.
What will be the points of revision of the new project are the employees, the local community and the public, especially with regard to the full implementation of the investment, as well as the benefits that will arise. Reportedly, project verticality, sustainability and the goodwill of investing in the local community are the triptych of the new project. At the same time, an important point is emphasized by the securities that the company seeks to have from the Greek State regarding the unimpeded course of investment and the avoidance of extraordinary reversals that derail its financial plan. In this context, it is proposed to increase the fees to the Greek State. As noted, The aim of the new contract is to make it possible to finance it on the basis of international standards and to reduce the high risk of it due to the Greek state's obsolete policy of previous years.
On the state side, the goal is to fully implement the investment, which also includes verticalization by creating metallurgy which means extractive production, as well as a clean final product (gold, silver, copper), as well as environmental protection of the area.
Investment path
Hellenic Gold's investment in Halkidiki is at a crucial juncture, and its long-term planning, as highlighted by space circles, requires careful steps. 1.1 billion euros have been invested so far. It is estimated that the capital required for the investment's life span is € 1.9 billion. Immediately for the Skouries plant, whose work begins in the next few days, 690 million Hellenic Gold is required to maintain operational control of the project and finance it through bank lending and co-investor, whose presence it requires clear procedures. As it is typically emphasized, the four-year delay of the project alone by Skouries cost Hellenic Gold EUR 750 million, according to company estimates. From the other side, Since 2018, efforts have been made to accelerate mining production at the Olympics, the result of which is beginning to be seen gradually. About 1,600 people work in the Halkidiki project.
Project evaluation
Hellenic Gold's new plan will be evaluated by the ministry of environment and energy before it is brought before the Greek Parliament. To this end, RIS, by its decision on 30/12/2019, commissioned a Financial Advisor Services to evaluate the new modified investment plan of Hellenic Gold AEMBX for the year 2019, to Grant Thornton Company Certified Auditors and Business Consultants. . The results of the evaluation are expected by the end of January. According to the text of the contract, the contractor's deliverables should include the "Evaluation of the financial parameters included in the proposed modifications to the Hellenic Gold AEMBX investment plan in Kassandra Mines",
[SOURCE: NAFTEMPORIKI, by Letta Kalamaras, 13/1/2020]
https://www.metalleiachalkidikis.gr/blog/2020/01/metalleiachalkidikis-ependytikosxedioellinikosxrysos/
also in Eldorado / Hellenic website under News
https://www.metalleiachalkidikis.gr/metalleia-chalkidikis-news.php