Greece’s highest court overturned its government’s decision to stop Eldorado Gold‘s mining operation and Johnson-Matthey has lifted its estimate of last year’s platinum market deficit.
Eldorado Gold Wins Greece Gold Mine Appeal
Greece’s top administrative court has annulled the government’s decision last year to revoke Eldorado Gold‘s mining license, according to court documents published on Wednesday. The Canadian mining company had appealed to Greece’s top court to overturn the ban on its plans to develop gold mines in a forested area of northern Greece, in a case widely seen as a test of the new leftist government’s approach to foreign investment.
Eldorado has put about $700 million into the project since 2012 and planned to invest another $1 billion to develop two mines at Skouries and Olympias sites in Halkidiki. Greece’s government initially revoked its permit in August, saying the tests for a so-called flash-melting method the company planned to use to ensure there would be no environmental damage did not take place on the spot, but rather outside Greece.
Johnson-Matthey Lifts Platinum Estimate
Johnson-Matthey has lifted its estimate of last year’s platinum market deficit after a surge in Japanese bar investment late in the year, though it cut its expectations for the palladium market shortfall.
Speaking at ETF Securities‘ annual investment conference on Wednesday, JM’s general manager for market research Peter Duncan said he expected deficits for both metals to persist this year, although he admitted this may have little impact on prices.
The company lifted its estimate for last year’s platinum market deficit to 702,000 ounces from 652,000 ounces in November, which Duncan cited in the earlier presentation. He credited the change to both an upswing in investment and a 13% drop in recycling.
Platinum hit its weakest point in more than seven years on Wednesday at $812.09 an ounce.