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Sat, May 26 2012
Dundee Precious freezes Bulgarian project, switches attention to Namibia
Photo: Nadezhda Chipeva
Canadian mining firm Dundee Precious Metals has shelved plans to develop a gold mine concession in Bulgaria, shifting attention instead to Namibia, Bulgarian daily Dnevnik reported on January 25 2009.
Bulgaria's Economy Ministry has been notified by the company that Dundee decided to freeze its plans in Bulgaria after agreeing to buy a smelter in Namibia. Dundee said on January 14 that it "entered into a binding letter of intent with Weatherly International plc (WTI) for the purchase of WTI’s Tsumeb smelter assets and related business.
"In the end, the final decision on the project [in Bulgaria] for the realisation of smelting capacities will be taken after an economic appraisal and after the final approval of project permits is given," Dnevnik quoted the Economy Ministry as saying.
Dundee's proposed facility at Chelopech, about 60km east of Sofia, prompted strong opposition from environmentalist groups, which criticised the company's plans to use cyanide to extract the gold. The company also hoped to secure a concession for a facility in Kroumovgrad in southeastern Bulgaria as well.
The company was also embroiled in a lengthy dispute with the Bulgarian government under the tripartite coalition, which avoided issuing a permit to Dundee despite a favourable environmental impact assessment. The dispute was settled in March 2008, when Dundee agreed to pay a higher annual concession fee and give the Bulgarian state a 25 per cent stake in the operations.
Dundee's plans later hit the rocks again, with the country's Supreme Administrative Court rejecting the environmental impact assessment in November 2009, a decision that the company is appealing.
Late in 2009, Bulgaria's new government asked the company to amend the existing plans, saying it was not interested in participating as a shareholder in the project, Dnevnik said.
But will all permits being contested in court, Dundee was no longer certain it would be allowed to proceed with the project. "We will need at least another five years to get all the required permits, which stultifies our investment," Dundee corporate director in Bulgaria Alex Nestor was quoted as saying.
Bulgaria's Economy Ministry has been notified by the company that Dundee decided to freeze its plans in Bulgaria after agreeing to buy a smelter in Namibia. Dundee said on January 14 that it "entered into a binding letter of intent with Weatherly International plc (WTI) for the purchase of WTI’s Tsumeb smelter assets and related business.
"In the end, the final decision on the project [in Bulgaria] for the realisation of smelting capacities will be taken after an economic appraisal and after the final approval of project permits is given," Dnevnik quoted the Economy Ministry as saying.
Dundee's proposed facility at Chelopech, about 60km east of Sofia, prompted strong opposition from environmentalist groups, which criticised the company's plans to use cyanide to extract the gold. The company also hoped to secure a concession for a facility in Kroumovgrad in southeastern Bulgaria as well.
The company was also embroiled in a lengthy dispute with the Bulgarian government under the tripartite coalition, which avoided issuing a permit to Dundee despite a favourable environmental impact assessment. The dispute was settled in March 2008, when Dundee agreed to pay a higher annual concession fee and give the Bulgarian state a 25 per cent stake in the operations.
Dundee's plans later hit the rocks again, with the country's Supreme Administrative Court rejecting the environmental impact assessment in November 2009, a decision that the company is appealing.
Late in 2009, Bulgaria's new government asked the company to amend the existing plans, saying it was not interested in participating as a shareholder in the project, Dnevnik said.
But will all permits being contested in court, Dundee was no longer certain it would be allowed to proceed with the project. "We will need at least another five years to get all the required permits, which stultifies our investment," Dundee corporate director in Bulgaria Alex Nestor was quoted as saying.
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Chelopech, Bulgaria
Chelopech, Bulgaria
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Krumovgrad, Bulgaria
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According to DPM estimates, the field contains about 25 tons of gold, while mining is expected take up eight to 10 years.
Canada's Dundee secures funds to back Bulgarian investments
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Hungary urges Europe-wide ban on cyanide mining technology
Hungary had put a law in force in December 2009 banning cyanide-based extraction technology and the ban should be widened across Europe.
Supreme Administrative Court rejects Chelopech Mining evironmental impact assessment
Bulgaria’s Supreme Administrative Court (SAC) has rejected at first instance the environmental impact assessment (EIA) by Chelopech Mining, the local branch of Canada's Dundee Precious Metals..
Chelopech Mining denies allegations of cyanide pollution
Chelopech Mining denied allegations of poluting the drinking water in the village of Chelopech and said the water reservoirs are safe. Allegations of cyanide poisoning had been the cause of a demonstration on January 20 by Cyanide Free Bulgaria.
Inspectors say Chelopech mine is safe
The tailings pond of Chelopech mine is safe as there were no toxic leaks polluting the environment in the immediate proximity of the mine, owned by Dundee Preciuos Metals. The situation is monitored and meets the European Union safety norms, the Sofia regional environmental inspectorate said after inspecting the site on November 10, as quoted by Dnevnik daily.
Dundee edges closer to opening Chelopech operations, Kroumovgrad doubtful
Bulgaria and Dundee Precious Metals, the Canadian metals extraction company, will soon form a joint venture in a 25-75 per cent share-out and use it to operate the Chelopech gold mine, the Government said in a statement. The two parties are expected to sign a memorandum for understanding to that end in a month's time. The document defines the principles for partnership in gold and copper ores extraction at the Chelopech gold mine.
Done deal
The twists and turns of the saga known as Chelopech ended with a golden victory for the state. After years of attempting to invest millions in the mine to boost gold production, the concessionaire - Canadian firm Dundee Precious Metals, has finally succumbed to the Government's silent refusal for its environmental impact assessment. The conflict had been going on for so long that the European Commission had been
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The Sofia Echo
To "Popintzi 'real'strikers" "Tzotzorkov officially announced intention to start works on Petelovo hill". Sorry, could you give me info when and where Cocorkov announced that. I could not find official info, and I was surprised to see on 25.01 Popinci people already ready for opposition. And I want to tell you that
important is
not WHO,
but WHAT
is planning.
Where are the Green Balkans'NOW to oppose to Tzotzorkov officially announced intention to start works on Petelovo hill?Where is the local Initiative commitee and the 'experts' to strike against Tzotzorkov intentions.
They claimed they will never let this happen,when opposed to mere exploration works by Martern -the company that won the bid and got the licence?
Come on lets see your real face and take it to court!
No,I think certain circles in Bulgaria that were involved into corruption with the Communnists for a whole era do not welcome foreign investment and now reshaped their policy to support the GERB government but stub its foreign investment policy with a knife from the back!
Who is the King of the region and an outstanding commie for all his life and now sly politician - 'preservationist' Tzotzorkov and the his clique!
Does Bulgaria really think that it welcomes investment and foreign companies with open arms with crap like this. This about sums it up: "We will need at least another five years to get all the required permits, which stultifies our investment,"