Alamos Gold files $1 billion claim against Turkish gov't
(Kitco News) - Canadian miner Alamos Gold (TSE:AGI) announced Tuesday that it will file an investment treaty claim against the Republic of Turkey for "expropriation and unfair and inequitable treatment" involving the company's assets in the country.
On its website, Alamos Gold lists three projects in Turkey. The company is disputing failure to renew its mining licenses for its Kirazli Gold Mine despite "...having met all legal and regulatory requirements for their renewal."
"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. The Turkish government has failed to provide the company with a reason for the non-renewal or a timeline for renewal of its licenses," writes the company.
Alamos said it had invested over $250 million in Turkey.
In its news release, Alamos said it regrets the action. The claim will be filed under the Netherlands-Turkey Bilateral Investment Treaty.
The mid-tier gold miner has operations in Canada and Mexico. It is expecting to produce between 470,000-510,000 gold ounces in 2021.
Alamos Gold's stock was largely unchanged, up 0.18% to $10.93 as of 10:30 a.m. ET.