Canadian-based intermediate gold producer Alamos is filing a $1billion investment treaty claim against the Turkish Government for ‘expropriation and unfair and inequitable treatment, among other things’, with respect to their Turkish gold mining project.
According to the company, the claim will be filed under the Netherlands-Turkey Bilateral Investment Treaty, and is expected to exceed $1 billion, representing the value of the Company’s Turkish assets.
Alamos, which has had an active presence in Turkey since 2010, accuses the Turkish Government of failing to grant ‘a routine renewal’ of the company’s mining licenses, despite it being ‘well into construction’ of the Kirazli Gold Mine at the time (in October 2019).
“In its effort to secure the renewal of its mining licenses, the Company has attempted to work cooperatively with the Turkish government, has raised with the Turkish government its obligations under the Treaty, has sought to resolve the dispute by good faith negotiations, and has made considerable effort to build support among stakeholders and host communities,” it said in a statement.
“The Turkish government has failed to provide the Company with a reason for the non-renewal or a timeline for renewal of its licenses.”
Alamos said the failure to renew the mining licenses, despite the company meeting all legal and regulatory requirements for the renewal, will result in the loss of over a 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,” reads the statement.
