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Türkiye's Nurol Holding is in talks to acquire three gold and silver mines in the western city of Canakkale from controversial Canadian mining company Alamos Gold, according to a Bloomberg report.
Turkish economy-focused publication Ekonomim daily noted that Alamos’ $1 billion investment treaty lawsuit against Türkiye could also come to an end if Nurol Holding acquires the above-mentioned gold and silver mines.
Alamos’ most advanced project in Kirazli was halted in 2019 after its license was not renewed and its forest permit was revoked.
The project had also faced widespread protests from environmentalists arguing that mines destroy the natural life in a wide geography.
Due to persistent protests in villages near gold and silver mines, the Canadian company's operations have become at the center of controversy in the last years.
In 2021, Alamos filed a claim against the state of Türkiye at the International Centre for Settlement of Investment Disputes, citing ''expropriation and unfair treatment'' due to court decisions partially preventing the company's operations.
The company argued that the assets it purchased for $40 million in 2010 had generated more than $1 billion in value and that the project would provide Türkiye with $551 million in revenue over its lifetime.
On July 2, the legal process was suspended following a settlement between the parties. The settlement between parties took place just two weeks after parliament passed a new law easing mining permits in environmentally protected areas in Türkiye.
Nurol Holding operates in sectors such as construction, defense, and tourism, and currently runs two gold and silver mines in Türkiye.
Toronto-based Alamos, meanwhile, has mining operations in Canada, Mexico, and the U.S. Its shares have risen 32% this year and have increased sevenfold since the end of 2018.
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