Oct
29
Spain’s mini gold rush beset by concerns
Filed Under EN
One prominent example is the Eurovegas mega-casino, backed by Sheldon Adelson, the U.S. billionaire, who has lobbied the government to change local laws on smoking and other issues in exchange for creating jobs.
Galicia and Asturias have unemployment rates above 20 per cent, so are as keen as the rest of Spain to attract employers.
However, Edgewater has discovered that employment concerns do not always seal the deal. Having embraced the project at the start, the Galicia government has backed away in recent months.
The company was told in July that it had to show it had access to an additional €30m in funding before the project could proceed – equivalent to a quarter of the total investment.
“They are killing the game for us,” said George Salamis, president of Edgewater. “This has sent a shockwave through our shareholder base and it impedes our ability to finance the project.”
Mr Salamis added: “The people of Galicia need this project and they need it now.” Edgewater had received 15,000 applications for the 270 jobs the company has promised to create. The mine enjoyed strong backing from locals, but he conceded there was opposition from environmental groups. This is also the case in Salave.
Alberto Núñez Feijóo, the Galician regional president, said this month that the Corcoesto plan could not be approved in its current form. He declared: “Every mining project has to be in strict compliance with environmental laws, business laws and [those] that relate to industry and technical feasibility.”
Mr Salamis still hopes that Edgewater will be able to win over the authorities, possibly after bringing in other investors and partners. For his company, however, much of the early enthusiasm over a mini gold rush has started to fade.
“There is tremendous gold potential here,” he said. “You can have the best deposit on the planet, but if the government doesn’t support you, it’s basically worthless.”
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