Thursday, 31st July 2008 (472 views)

Canada's Dundee Precious Metals has been finally granted a permit by the Bulgarian environment ministry to expand a gold mine in the country.

The Chelopech gold mine is the biggest mine in Europe, according to Reuters.

Expansion of the site has been delayed for two years due to a dispute between the mining corporation and the European Union new member country.

Terms of the agreement will mean Dundee Precious Metals will give the Bulgarian government a 25 per cent stake in a C$155 million (£76 million) gold processing plant which will come into effect later this year.

In addition, the news agency said the mining company will have to pay a higher annual fee in order to explore Chelopech.

Processing at the plant will now be able to reach an annual rate of two million tonnes per year, growing from 950,000 tonnes.

Eventually this rate will reach three million tonnes, according to the company.

In other news, Dundee Precious Metals reported a net loss of $14.1 million for the second quarter.

 

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