Eurogold Halted

Eurogold Halted

Mining Monitor - Vol 2 No 4 December 1997

In mid October a Turkish administrative court ruled against the use of cyanide in the Eurogold project in Western Turkey. The court ruled unanimously that "the process of allowing the operations of a gold mine via cyanide-leaching method is not in line with public benefit. For the above reasons, the court decided unanimously on October 15 to cancel the process subject to this case". Eurogold claimed that the court decision had not been forwarded to them and that their "lawyers were looking into the matter".

Despite an earlier ruling the Eurogold consortium, which is partly owned by Australian company Normandy Mining, continued the construction of the plant. Just days after the ruling Normandy held its Annual General meeting. Normandy's Chairman, Robert de Crespigny told shareholders that the Ovacik mine would be one of the three important sources of profit for the next ten years.

De Crespigny told shareholders that "for some years now we have faced a small but determined group of opponents who have sought to use the opposition to Ovacik to further their political careers. Our opponents continue their hysterical and scientifically nonsensical crusade against the use of cyanide in gold processing, which has lead to bomb attacks on our offices in Izmir and Bergama, violent demonstrations at the minesite with looting and vandalism and an endless parade through the courts". However shareholders were not told of the defeat in the courts that occurred just days beforehand.

In a letter to the Australian Greens Senator, Dr Bob Brown, de Crespigny claimed that "the genesis of our difficulties appears to be the joint venturers' steadfast refusal to pay or provide financial inducements to a select few Turkish community leaders". He claimed that Normandy regards the project as one "which adheres to the highest environmental standards and is in keeping with our goal of employing and empowering local communities and indigenous peoples".

The Australian Government confirmed in response to a question by Senator Brown that the Australian Ambassador, along with French and Canadian Ambassadors, had lobbied the Turkish Government in support of the project. It dismissed the petition from members of the Turkish community in Australia claiming that "judged by the number of signatures, opposition to the project in the Turkish community in Australia would appear to be
confined to a small minority". While the Government confirmed that it did not hold copies of the Turkish Government assessments the Australian Government supported the project as "this is a major investment by an Australian company, which will add considerably to the depth of Australian-Turkish commercial relations". The Minister for Foreign Affairs
indicated that Eurogold intends after an initial period of operating "to invite international inspection of the minesite to verify its claims that the process does not cause any environmental problem".