Canada’s Dundee Precious Metals Inc said yesterday it had asked the European Commission to intervene on Bulgaria’s refusal to grant it environmental permits for two gold mines.
Last August, Bulgarian Environment Minister Dzhevdet Chakarov said he would not sign off on the 30-year gold-mining concession because it did not suit national interests.
Dundee claims that the minister has violated the company’s right to do business anywhere in the 27-nation bloc, saying he never gave any reason for not deciding on the permits before agreed deadlines.
If the EU executive opens an investigation, it can eventually demand that Sofia take action or face fines.However, it is under no obligation to act on formal complaints that companies file.
The company is trying to get Bulgarian government approval to press on with two investment projects – to expand the Chelopech mine and to exploit another gold deposit near the southern town of Krumovgrad. Its investments to date are 136.1 million euros (US$181.5 million) and it plans to spend another additional 146.1 million euros to develop the mines.
Both projects won the support of Bulgaria’s economy ministry, but Chakarov has so far refused to grant final approval, saying he wanted to consider “all aspects of the case.” Dundee insists that Chelopech’s environmental impact assessment meets all Bulgarian and EU environmental standards and Chakarov has ignored a court order to decide on reject or approving them. Another court is due to rule shortly that could tell the minister to also make a decision on Krumovgrad.
“We have made a significant investment in Bulgaria and plan to invest more. Despite following all governmental guidelines, we have been refused the necessary environmental permits to expand our operation at Chelopech and develop our project at Krumovgrad,” said Dundee CEO and President Jonathan Goodman.
The Chelopech mine has an estimated 120 metric tons of gold deposits, more than 290 metric tons of silver and 435,000 metric tons of copper deposits, according to official data.
Last year, officials, who asked not to be named, suggested that the government was trying to press the company to increase the initially agreed concession fees. The total value of the deposits is estimated at more than 4.6 billion euros (US$5.8 billion).
(The Associated Press, 07/06/2007)