The Contribution of Hellas Gold to Economic Development and Employment in NE Halkidiki
03.07.24
The mining industry has traditionally been a driver of economic development and a significant factor in job creation in the areas where it operates. It employs a wide range of specialties, offering well-paid jobs in various fields such as mining, processing, engineering, geology, and environmental management.
Due to its typically long-term duration, mining activity serves as a stable source of regional development, especially in areas with significant mineral resources. Take, for example, the northeastern part of Halkidiki, a region known for its rich subsoil since ancient times and the era of the Macedonian Kingdom. Here, Hellas Gold, a leading company in the mining sector in Greece, has been modernizing, developing, and operating the Kassandra Mines for 20 years, with a measurable impact on boosting the national and local economy and enhancing employment in the broader pre-Athos area. Currently, the company is completing the construction of the Skouries project, a world-class copper and gold mining project with numerous benefits for our country and the local community.
It is noteworthy that the construction phase of the project, which restarted early last year, has already created 600 new jobs. The Kassandra Mines, in their full capacity, are expected to create a total of 3,000 jobs, offering numerous employment opportunities in various specialties to the local residents. Furthermore, despite the decade-long economic crisis that the country experienced and the decline in wages, Hellas Gold steadily increased the wage levels of its employees, which have risen by 30% since 2012 (an annual growth rate of 2.4% compared to a 3.7% decline in national income). Additionally, the company annually provides a significant productivity bonus to its staff, amounting to €5.1 million in 2023.
Overall, the company currently employs over 1,900 workers, with 9 out of 10 coming from the local community, while approximately 50% of those working on the Skouries construction project have permanently relocated to the area. This number is expected to increase significantly in the coming years as positions related to the construction of the Skouries project gradually transition to roles associated with the operation of the new state-of-the-art mine.
In the strategic sector of health and safety, new technologies applied abroad, such as remote mining methods, ventilation on demand, and underground mine electronic safety systems, are enhancing the working conditions for the company's employees and further increasing the already high levels of safety and productivity. In this direction, Hellas Gold invested an additional €2.5 million in health and safety equipment and systems in 2023, as well as a total of 26,449 hours of training. In this context, Hellas Gold created a Technical Training Center, where it retrains part of its existing staff in new technologies, while also paving the way for young men and women to join its large workforce. This contributes to both the country's brain gain and the increase in the number of women in various positions and roles.
Multi-level Contribution
Beyond offering thousands of jobs, the company also serves as an economic driver for the region as a whole. In this context, over the past decade, it has invested more than €28 million in actions related to education, the environment, health, culture, and more. Regarding the present and future, it has committed through its Investment Agreement with the Greek State to implement flagship social care and local development projects worth $80 million, to be invested in a forward-looking manner.
Finally, it is worth noting that, in addition to creating jobs and implementing social actions and projects, Hellas Gold significantly supports the Municipality of Aristotle through the annual payment of mining fees to the Greek State. Specifically, 40% of these fees are allocated to the Municipality of Aristotle to strengthen its basic infrastructure and for development projects that will be a legacy for future generations, even in the post-mining era. In 2022 alone, the Municipality of Aristotle received €3.5 million from the company's mining fees, accounting for 95.6% of the total revenue for municipalities from mining activities throughout Greece.
