Dundee Precious Metals CEO Gives Thumbs up to Bulgaria Cabinet

Industry | September 15, 2009, Tuesday // 19:26|  views

The Bulgarian gold miners in Chelopech support the Canadian investors. The mine employes 900 workers. Photo by BGNES

Bulgarian Prime Minister, Boyko Borisov, and the new cabinet have the will and the desire to change the investment climate and turn their country into a preferred business destination.

The statement was made Monday at the annual Gold Forum in Denver, US, by the President and CEO of the Canadian based, international Company, Dundee Precious Metals, Inc.

The company has two investment projects in Bulgaria - the expansion of the gold mine in Chelopech and gold extraction in the Krumovgrad mines.

Goodman told the Forum that the cabinet, in particular the Ministry of Environment and Waters, had undertaken actions that would finally launch the execution of the company's investment projects in Bulgaria, to lead to significant direct and indirect profits for the country's economy.

"The new Environment Minister, Nona Karadzhova, since day one of assuming her post, demonstrated the Ministry would make decisions based on priorities for adherence to the law, protection of the environment and application of modern mining methods, all very positive developments and good sign for all investors in Bulgaria, including Dundee Precious Metals" Goodman said, cited by the Bulgarian information agency BTA.

The Denver Gold Forum is said to be the most prestigious annual investment event, bringing together mining executives, investors, companies and experts from all over the world.

Dundee Precious Metals have a long running history of controversy with Bulgaria's former governments, in particular with the previous Three-Party Coalition cabinet led by the Bulgarian socialists.

In June of 2007 Dundee even logged a complaint with the European Commission against the Bulgarian government over the long-stalled deal.

The company protested against the failure of the then Bulgarian Environment Minister, Dzhevdet Chakarov, to issue environmental permits for Dundee's two mining projects in the country, despite the company fulfilling all the requirements for them. At the time Chakarov explained his refusal with the fact that the concession had been signed by Ivan Kostov's cabinet and the State had been cut short from the deal.

Dundee owns the exploration license for a gold mine at Krumovgrad in southern Bulgaria, 25 kilometers southeast of Kardzhali, and a gold and copper mine at Chelopech, 50 kilometers east of Sofia.

In June 2008, the former cabinet approved a partial nationalization of the gold extracted from the Chelopech mine with the decision to create a joint stock company for the extraction of gold and copper ore.

The initial concession contract has been created in 1999 and was changed by the Three-Party Coalition cabinet. One of the changes provided for the significant increase of the concession compensation while 10% of it would be deposited in the budgets of the municipalities of Chelopech and Chavdar where the mines are located.

The Chelopech project has won the backing of the miners in the region.


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Tags: Dundee Precious Metals, Jonathan Goodman, Chelopech gold mine, Krumovgrad, Boyko Borisov, Nona Karadzhova, Dzhevdet Chakarov, Ivan Kostov


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