Gold companies mining in Greece say the play to increase the output from 16,000 ounces in 2011 to 425,000 ounces within a few years, which could bring in a bonanza.
If procedures are expedited, Greece could be one of the biggest producers of gold in the European Union by 2016, but there has been a record of bureaucratic delays in granting licenses and Greeks in some areas where mining is going on have been protesting what they said would be environmental damages.
According to estimates from Eldorado Gold and Glory Resources, the big increase in production could bring in $757 million based on the price of gold as of Oct. 5 this year. But there have been costly delays too.
Steve Sharpe, head of development for European Goldfields, told Bloomberg that the three continuous years it was waiting for the government for a license to mine gold led to its share prices falling, reducing its value, although that attracted buyers.
“Under no circumstances would I return to Greece,” he said. Such delays, it was stressed, are now less frequent in Greece because of the country’s recession and crushing economic crisis, which has led the government to seek investors to provide more jobs, as the unemployment rate hit a record 25.1 percent.
Gold mining is gathering momentum especially after the approval of the so-called “fast-track” procedures to expedite the process for gaining government approvals but still faces staunch resistance from environmental groups and other opponents.
(Source: capital.gr)
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