Alamos Gold demands 1 billion dollars in compensation from Turkey

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Having caused the loss of nearly 350,000 trees on the Ida (Kaz) Mountains in northwestern Turkey for a gold mine project and still continuing its presence in the area although its license expired in October 2019, the Alamos Gold company has announced that it will file an investment treaty claim against Turkey.

The claim will be filed for "expropriation and unfair and inequitable treatment," and is expected to exceed 1 billion US dollars, the Canada-based company said on its website, noting that it wasn't given an explanation as to why its license was not renewed.

The mine project caused a widespread public outcry after the felling of trees in mid-2019, with thousands of people keeping a watch in the Ida Mountains for over a year.

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The company said that it had invested more than 250 million dollars in the country and contributed 20 million dollars in royalties, taxes and forestry fees to the government since 2010. "Over the life of the project, government revenues alone are expected to total $551 million," it stated.

The company asserted that it had met the highest environmental management standards, as well as creating hundreds of jobs and maintaining trusting relationships with local communities.

"The failure to renew the Company's mining licenses will result in the loss of over half a billion dollars in future economic benefits to the Republic of Turkey, including tax and other revenues, and thousands of jobs within Turkey.

"In addition to the lost job opportunities, this will also have a lasting impact on the local population through the disruption of ongoing investments into community projects.

People staging a demonstration on the project site in August 2019. (Photo: Çanakkale Municipality / Twitter)

"After 10 years of effort ... we have been shut down for over 18 months in a manner without precedent in Turkey, despite having received all the permits required to build and operate a mine.

"The Turkish government has given us no indication that relief is in sight, nor will they engage with us in an effort to renew the outstanding licenses.

"Alamos and the Subsidiaries expect to incur an after-tax impairment charge of approximately $215 million, which will be recorded in the second quarter financial statements. The non-cash charge reflects Alamos' and the Subsidiaries' entire net carrying value of the Turkish assets." (TP/VK)