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by Mike Caswell

Eldorado Gold Corp. is facing a lawsuit in the Supreme Court of British Columbia claiming that the company failed to completely pay for a $3.8-million water treatment plant at one of its mines in Turkey. (All figures are in U.S. dollars.) The suit, filed by a U.K. company called Naston Ltd., states that Naston provided a fully functional water treatment plant, but has not received $856,909 of its bill.

The allegations are contained in a notice of claim filed at the Vancouver courthouse on July 5, 2012. According to the claim, Eldorado and Naston entered an agreement on Oct. 22, 2008, in which Naston would design and deliver a water treatment plant to an Eldorado project in Turkey. The final price was $3.8-million.

The problems, as described by Naston, began before the plant even arrived in Turkey. In April, 2009, when the plant was ready for shipping, Eldorado instructed Naston to suspend shipments in order to resolve a tax issue with the Turkish government. Naston claims it was entitled to full payment then, because the plant was ready to be shipped, but Eldorado did not pay the bill. Also an issue was changes that Eldorado made to the plant location after the agreement was signed. Naston says it had to rework part of the plant, and in the process incurred unexpected costs for engineering and materials.

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