High court throws out decision blocking Skouries gold mine’s enrichment plant

Justices said the previous decision was unjustified, as relevant town planning provisions do not apply to licensed mining operations

The Council of State, Greece’s highest administrative court, on Monday threw out a recent decision by a regional entity to block an enrichment plant at the controversial Skouries gold mine in northern Greece.

The high court said the decision was illegal and that construction of the unit by Hellas Gold, the subsidiary of Canadian multinational Eldorado Gold, can proceed.

The decision to block the construction was issued by a regional entity, the environment directorate of the central Macedonia region.

Justices said the decision was unjustified, as relevant town planning provisions do not apply to licensed mining operations, instead the legal code for mines supersedes the former.

The Skouries gold mine has generated passionate opposition by environmental advocates, a portion of the local residents and was opposed by leftist SYRIZA when it was in the opposition. Criticism ranges from environmental damage to the verdant eastern Halkidiki region where it was located to unfavorable terms for the state.

On the other side, proponents — including thousands of families whose breadwinners work at the complex — defend the mining operation’s safety and environmental safeguards and point to one of the biggest direct foreign investments in Greece by a reputable international company.