Gold Miner Seeks $1 Billion From Turkey for Stalled Mine – by Taylan Bilgic (Bloomberg News – April 20, 2021)

https://www.bnnbloomberg.ca/

Canadian miner Alamos Gold Inc. said it’s pursuing a $1 billion claim against Turkey for preventing a controversial mining project from going ahead.

Two Netherlands-based Alamos units will file an investment treaty claim against Turkey for “expropriation and unfair and inequitable treatment” concerning its Kirazli gold mine project in the country, the Toronto-based parent said Tuesday in a statement.

The claim, filed under the Netherlands-Turkey Bilateral Investment Treaty, is expected to exceed $1 billion, Alamos said, adding that the amount represents the value of its Turkish assets.

The company expects to take an impairment charge of about $215 million in its second quarter. Shares fell 0.3% to C$10.88 at 9:57 a.m. trading in Toronto.

Alamos is escalating efforts after the Turkish government wouldn’t renew mining licenses for the project in October 2019, and a year later canceled a forestry permit tied to the development in western Turkey.

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