Canadian mining company challenges Turkish economy with consolidation suit

Canadian gold mining company Alamos Gold said that a consolidation suit they will file could ruin the Turkish economy, the daily Sözcü reported on May 3. The company's activities in the western Kaz Mountains have been the source of tension since their operations license expired in August 2019, when masses flocked to the area to urge the firm's evacuation.

Monday May 03 2021 10:22 am

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Canadian gold mining company Alamos Gold has challenged the Turkish economy by saying that a consolidation lawsuit they will file can ruin the country's finances, the daily Sözcü reported on May 3.

The Canadian mining company's work in the Kirazlı stone quarry in Turkey's western Kaz Mountains has been the center of public controversy since the summer of 2019 when the firm's operations license expired.

Masses flocked to the Kaz Mountains in August 2019 to urge Alamos Gold's subsidiary Doğu Biga to evacuate the region, but the company has been resisting public opinion on the grounds that they have the right to operations in the area.

"Alamos Gold is confident enough to say that a [consolidation] lawsuit they will file can ruin the Turkish economy," Sözcü columnist Çiğdem Toker said.

With their headquarters located in the Netherlands, Alamos Gold will file a lawsuit based on a trade deal between Turkey and the European state, Toker noted.

Alamos Gold is expected to file for over a billion Turkish Lira on the grounds that their operations were hindered in Turkey, and the lawsuit could last as long as five years, Toker said.

The mining company lost $215 million between April and June of 2021, they said in a quarterly report dated April 28, and have spent a whopping $1.5 million in public relations efforts.

The cost of keeping Doğu Biga active during the lawsuit is estimated to range between one and two million dollars.