Eldorado Surges After Greek Court Rejects Mining Halt

  • Court cites `irreparable damage to the well-being of miners'
  • Decision comes one day after CEO meets Greek energy minister

Eldorado Gold Corp., battling to develop a mine in Greece, surged after the supreme court rejected a government decision to halt mining activities in the north of the country.

Saying its ruling was temporary pending a final environmental review, the court cited the “irreparable damage to the well-being of miners” as its reason to reject the energy ministry’s decision.

Vancouver-based Eldorado climbed 9.1 percent to C$4.42 at the close in Toronto, after earlier rising 11 percent, the most intraday since July 31. The shares have declined 38 percent this year.

“If we are notified of our suspension being lifted, it is our intention to have our employees return to work," Krista Muhr, a spokeswoman for Eldorado, said Friday in a telephone interview. As of now, the company hasn’t been notified, she said.

A Greek energy ministry spokesman wasn’t available to comment.

Chief Executive Officer Paul Wright told reporters in Athens Thursday that he had held constructive talks with Greek Energy Minister Panos Skourletis. The company is optimistic it can reach an agreement with the new government, Wright told an industry conference in Denver last month.

In August, Eldorado said it would suspend most mining and development activities at its operations in a forested area of northern Greece after the government revoked some technical studies at its projects.

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