Greece is close to approving an environmental impact study submitted by London-based European Goldfields to run two goldmines in the country, a senior environment ministry official said on Thursday. The Greek unit of European Goldfields, Hellas Gold, operates a lead and zinc mine in the northern Greek region of Halkidiki and submitted the study (EIS) last year, seeking to mine for gold and other metals in the area, a project seen key to its growth plans.
The public consultation on the study ended in December, but Greece has been delaying its approval, partly in a bid to overcome local opposition to the project. Greece also wanted to make sure the project would not harm water reserves in the area, said Margarita Karavassili, special secretary at the environment ministry. "It (EIS approval) is in the final stage," Karavassili told Reuters in a telephone interview. "It is a matter of days before it goes to the minister (for final approval)."
European Goldfields shares listed on the London Stock Exchange jumped after the news and were up 12 percent at 1557 GMT. Karavassili did not give a timeframe but said Environment Minister Tina Birbili wanted to meet with local residents to inform them about the project. She also said Greece had asked the company to provide financial benefits to the local community before granting final approval for the project. "There are discussions for additional commitments by the investor, which will be announced by the minister and will be legislated," Karavassili said.