Discussion paper drafted for governmental
bodies/authorities, using the Skouries project as a positive case study to
demonstrate how the successful integration of geological and non-geological
data can lead to a major, strategically important mining investment.
Executive Summary
As Greece positions itself as a key supplier of Critical Raw
Materials (CRMs) for Europe, it is crucial to learn from both past challenges
and recent successes. While other projects have stalled due to non-geological
factors, the Skouries copper-gold project in Halkidiki stands
as a testament to what can be achieved when a comprehensive, integrated
approach is taken. After years of setbacks, the project has successfully
navigated regulatory hurdles, secured social license, and is now on the verge
of commercial production, with first copper-gold concentrate already achieved
in September 2026.
This paper argues that the Skouries project provides a
clear, replicable model for success. It demonstrates that by proactively
addressing environmental, social, and governance (ESG) factors alongside
geological and technical considerations, the government and investors can
transform a contentious project into a strategic national asset. I (We) propose
codifying the lessons learned from Skouries into a standardized
Pre-Tender Integrated Assessment (PTIA) protocol for all future
mineral tenders. This will ensure that Greece and the EU can sustainably and
efficiently develop their mineral wealth for the benefit of the national
economy and local communities.
The Skouries Project - a case study in successful integration
The Skouries project, part of the Kassandra Mines Complex,
is one of Europe's largest copper-gold projects. It is a high-grade porphyry
deposit that will be mined using a combination of surface and underground
methods. The project is a cornerstone of a larger investment by Eldorado Gold
(parent company of Hellas Gold) in Greece, exceeding €2,6 billion.
The path to success was not straightforward. Construction
was suspended for four years between 2017 and 2021 amid permitting delays and
local opposition. However, the project was revitalized through a revised
investment agreement with the Greek government in 2021 and a renewed commitment
to a comprehensive approach that addressed the very non-geological factors that
have plagued other projects.
The result is a project that is now 97%* complete, employs approximately 3,000* people during
its construction phase, and has already produced its first copper-gold
concentrate. It is projected to produce an average of 140,000 ounces of
gold and 67 million pounds of copper annually over its initial expected 20-year mine life, positioning Greece
as a significant
gold-producing country in
Europe and establishing it as a reliable producer of strategic metals.
(*) As at June 30, 2026
The pillars of success at Skouries- an integrated approach
The success of the Skouries project can be attributed to the
effective management of four key pillars of data, moving beyond a purely
geological focus.
Pillar 1: Geological & technical data
The foundation of the project is a world-class ore body. Total proven and probable reserves stand at 741,000 tonnes of copper and
3.6 million ounces of gold. The project's design incorporates
state-of-the-art technology and best-in-class sustainable practices, ensuring
efficient and responsible extraction.
Pillar 2: Environmental & ecological data
Hellas Gold has demonstrated a strong commitment to environmental stewardship.
The project operates under a comprehensive Environmental and Social Impact Study and the regulatory Environmental
Impact Study (EIA) that
was approved in 2023.
Key environmental management practices include:
·
Environmental monitoring program: Environmental
monitoring data is measured
through 700 checkpoints and made publicly accessible through a dedicated platform,
demonstrating a commitment to transparency and accountability.
·
Filtered tailings: The Skouries project uses safer, more
environmentally beneficial filtered tailings, reducing water and storage needs
so that only one tailings management facility is required instead of the two
originally planned, resulting in up to a 40% smaller environmental
footprint.
·
Parallel rehabilitation & Backfilling: The solid form of the tailings
allows to regenerate the disposal facilities in parallel with mining activities
gradually. That means that the site will be rehabilitated and ready to be
handed back to the local community sooner after the end of mining activity. Mining
tailings will be used to fill in the areas that were mined out in the
underground mine, as well as the open pit, to restore the original terrain.
·
Protection of water and facilities: Water consumption is reduced with targeted projects, such as filtering
and recycling through a water treatment plant. Water diversion channels keep
surface waters from even entering the mine site, while groundwater inflows are
reduced by pre-draining waters and re-injecting them into the aquifer.
Pillar 3: Social & community data
This is arguably the most significant factor in the project's turnaround. The
company has made substantial efforts to build and maintain a Social
License to Operate (SLO).
·
Local employment: The vast majority
of the 3,000 people working at the
Kassandra Mines are drawn from the local region, providing stable, well-paid
jobs and embedding the local workforce in the project's success. At its peak, including the construction period,
the project has employed around 5,200
workers.
·
Community investment: Hellas Gold's
social investment program has delivered projects worth €36.4 million so
far, with a projected total of approximately €69 million over
the project's lifespan. The project is also expected to contribute €509 million
in royalties to the Municipality of Aristotle through the
life of mine.
·
Skills development: An innovative
training center worth more
than €3 million, the ‘Prometheus Mining Academy’, has been established,
using advanced simulation technologies to equip local people with the skills
needed for lasting careers in the mining sector.
·
Continuous engagement: The company
actively involves local communities in decision-making and has hosted several stakeholder and media visits to foster open dialogue and provide first-hand
insight into the project's progress and benefits. During the ESIA consultation in 2022, more
than 300 stakeholder meetings were held to inform and engage local communities in
the company’s planning.
Pillar 4: Legal & governance data
The project's success has been underpinned by a stable and predictable legal
and governance framework, particularly following the amended investment
agreement in 2021. This provided the regulatory certainty needed for Eldorado
Gold's board to approve the restart of construction in 2022. The partnership
between the company, the Greek government, local banks, and EBRD has been crucial in reaching
development milestones.
Recommendations for governmental authorities
The Skouries project serves as a blueprint for successful
resource development. To replicate this success and avoid the pitfalls seen in
other cases (e.g., Chios antimony), we recommend the following:
·
Adopt the Skouries model as a best practice: Formally
recognize the integrated, multi-stakeholder approach used at Skouries as the
standard for future large-scale mining investments in Greece.
·
Mandate a Pre-Tender Integrated Assessment
(PTIA): As previously recommended, require a comprehensive PTIA before
any public tender is published. The Skouries case shows that this assessment
should include:
o
Environmental baseline studies: Mapping
sensitive areas, assessing water resources, and planning for climate risks.
o
Social license mapping: Proactively
engaging with local communities to understand their concerns, expectations, and
potential for partnership.
o
Economic impact assessment: Quantifying
the potential benefits for the local and national economy, including jobs, tax
revenues, and procurement opportunities.
o
Governance & legal review: Ensuring
a stable and transparent regulatory framework is in place.
·
Prioritize early and transparent community engagement: The
government should work with investors to facilitate early, meaningful
consultation with local communities. The goal is to co-create a shared vision
for the project that aligns with local development priorities, as demonstrated
by Hellas Gold's commitment to local hiring and community investment.
·
Integrate ESG commitments into concession agreements: Use
the PTIA findings to inform the terms of the concession. Require binding
commitments to:
o
Local employment and training: Prioritize
hiring from the local region and invest in skills development.
o
Community royalties and Corporate Social
Responsibility (CSR) Programs: Establish a clear and transparent
mechanism for sharing the financial benefits of the project with the host
municipality.
o
Environmental protection and monitoring: Enforce
the highest environmental standards and ensure public access to monitoring
data.
·
Foster a stable and predictable investment climate: The
revised investment agreement was a critical turning point for Skouries. The
government should continue to ensure that its regulatory and fiscal policies
provide the certainty needed to attract and retain long-term, strategic
investments in the mining sector.
Conclusion
The Skouries project clearly demonstrates that successfully
developing Greece's Critical and Strategic Mineral Raw Materials is achievable.
It shows that by moving beyond a purely geological focus and integrating
environmental, social, and governance data into every stage of the process, a
project can overcome significant obstacles and deliver substantial benefits for
the country and its local communities.
The first copper-gold concentrate from Skouries is not just
a technical milestone; it is a symbol of what can be accomplished with a
comprehensive, partnership-driven approach. By adopting the lessons learned
from Skouries and codifying them into a standardized Pre-Tender Integrated
Assessment protocol, Greece can ensure that its mineral resources potential
becomes a cornerstone of sustainable economic growth and a key contributor to
Europe's strategic autonomy.
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