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News
07.6.2007
Dundee files complaint against Bulgaria at the EU
SOFIA (Reuters) - Canada's Dundee Precious Metals said on Thursday it has lodged a complaint against Bulgaria at the European Commission for effectively blocking a planned $250 million investment.
Dundee has asked Brussels to pressure Bulgaria over Environment Minister Dzhevdet Chakarov's refusal for more than two years to issue environment permits at two gold mines.
"Minister Chakarov's conduct is clearly a significant concern to those who want to expand and invest in the EU's newest member state," said Dundee's CEO Laurie Marsland.
"We hope that the European Commission takes the necessary measures to remedy the situation," he said in a statement.
The mining company said it has asked Brussels to decide whether or not to open an infringement procedure against the Balkan country for its failure to comply with EU treaties.
The environment ministry declined to comment.
A top Bulgarian court ruled in April that the minister must decide whether or not to allow Dundee to carry out a $175 million upgrade of its Chelopech gold mine, the biggest in Europe.
Chakarov has yet to rule on the project.
Chakarov has also refused to rule on Dundee's plan to invest $75 million to develop an open pit gold mine near Krumovgrad in southern Bulgaria, despite a court ruling he should do so.
Environmental groups have lobbied against developing the mines, attacking the cyanide-based technology used to extract the precious metal.
Dundee has argued that political interests and corruption, not environmental concerns, are responsible for the delays.
Recently the junior coalition partner, the ethnic Turkish MRF party, of which Chakarov is a member, voiced concerns that the concession at Chelopech was hurting the national interests and argued that Bulgaria should reclaim a stake in it.
Dundee flatly refused and threatened to launch legal proceedings at an international court against Bulgaria.
It has also suggested it may move its gold and copper processing to another European country, urging future investors to think twice before coming to Bulgaria.
A recent survey of an independent think-tank showed that political corruption remains high in Bulgaria and the Socialist-led government has done little if anything to sever links between corrupt politicians and criminal bosses.
More interactive news - http://ca.news.yahoo.com/
Dundee has asked Brussels to pressure Bulgaria over Environment Minister Dzhevdet Chakarov's refusal for more than two years to issue environment permits at two gold mines.
"Minister Chakarov's conduct is clearly a significant concern to those who want to expand and invest in the EU's newest member state," said Dundee's CEO Laurie Marsland.
"We hope that the European Commission takes the necessary measures to remedy the situation," he said in a statement.
The mining company said it has asked Brussels to decide whether or not to open an infringement procedure against the Balkan country for its failure to comply with EU treaties.
The environment ministry declined to comment.
A top Bulgarian court ruled in April that the minister must decide whether or not to allow Dundee to carry out a $175 million upgrade of its Chelopech gold mine, the biggest in Europe.
Chakarov has yet to rule on the project.
Chakarov has also refused to rule on Dundee's plan to invest $75 million to develop an open pit gold mine near Krumovgrad in southern Bulgaria, despite a court ruling he should do so.
Environmental groups have lobbied against developing the mines, attacking the cyanide-based technology used to extract the precious metal.
Dundee has argued that political interests and corruption, not environmental concerns, are responsible for the delays.
Recently the junior coalition partner, the ethnic Turkish MRF party, of which Chakarov is a member, voiced concerns that the concession at Chelopech was hurting the national interests and argued that Bulgaria should reclaim a stake in it.
Dundee flatly refused and threatened to launch legal proceedings at an international court against Bulgaria.
It has also suggested it may move its gold and copper processing to another European country, urging future investors to think twice before coming to Bulgaria.
A recent survey of an independent think-tank showed that political corruption remains high in Bulgaria and the Socialist-led government has done little if anything to sever links between corrupt politicians and criminal bosses.
More interactive news - http://ca.news.yahoo.com/
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