Hellas Gold

Through royalties, taxes, and social contributions, the Kassandra Mines are expected to generate revenues exceeding USD 2 billion for the Greek state. This includes a 2.2% mining royalty on all metals produced from the Kassandra Mines. In addition, USD 80 million has been committed to Corporate Social Responsibility programs under the Community Development Plan (CDP).

The purpose of the Community Development Plan (CDP) is to define a corporate, interdisciplinary strategy for achieving long-term benefits for the communities affected by the Kassandra Mines Project.

Its objectives are:
• to guide the coordination of Hellas Gold teams in pursuing a common set of goals for local community development,
• to establish the framework of accountability, methods, and resources through which the CDP will be implemented,
• to maximize interdisciplinary synergies in carrying out community development activities.

External Stakeholders

• Local communities (Municipalities of Aristotelis, Polygyros, and Volvi, ~26,000 residents) directly affected by the operation of the Kassandra Mines
• Vulnerable and marginalized groups (e.g., women, youth, individuals with limited access to education and healthcare) targeted through specific initiatives
• Educational institutions & students, through STEM programs and training for new job opportunities
• Local businesses and suppliers, who can be integrated into the company’s supply chain or supported through the Community Investment Plan (CIP)
• Local authorities & government bodies, as institutional partners in project governance and financing
• NGOs and social organizations, engaged in consultation processes, community development, and social programs

Internal Stakeholders

• Employees of Hellas Gold
• Participate in training, skills development activities, and health & safety committees
• Act as communication channels with local communities through CSR Officers, CLOs, and grievance mechanisms

Company management and departments (HR, Procurement, Environment, Legal, Training), which coordinate and implement CDP activities

In summary: The CDP primarily addresses the local communities and residents of Halkidiki and Volvi, but also involves employees, local businesses, educational institutions, NGOs, and public authorities.

25 years as provided for in the Investment Agreement between the Hellenic State and Hellas Gold.

The implementation of the Community Investment Plan will be based on the following principles to create long-term value for society.

Strategic investments: The investments of the Community Investment Plan deliberately contribute to Hellas Gold’s strategic objectives for community development and to Eldorado Gold’s Sustainability Framework.

No one left behind: Investments provide benefits to the entire community, with a conscious commitment to ensuring the inclusion of marginalized and vulnerable groups.

Participation and consultation: The identification, selection, and implementation of investments are based on due consultation with communities, as well as on their meaningful participation throughout the project cycle.

Evidence-based decisions: Investment decisions are grounded in sound and reliable data that are shared transparently with stakeholders.

Capacity development: Capacity building (for communities, government, and other implementation partners) is embedded both in the investment decision-making process and in execution and delivery.

Utilization of local resources: Activities under the Community Investment Plan will prioritize local employment and the procurement of goods and services from local suppliers, with the aim of strengthening local capacity, enhancing local economic development, and building trust.

Accountability for results: Systems are in place for data collection and results monitoring, with accurate and regular reporting to stakeholders on progress and performance, as well as timely corrective actions based on lessons learned.

Sustainable development: Investments are made with a long-term perspective and are based on planning for environmental, institutional, and financial sustainability.

In addition, the Plan focuses on the following key areas:
A. Local employment, and
B. Local supply chain and procurement.

And three complementary areas covering:
A. Environment (specifically biodiversity, waste, and water management),
B. Cultural heritage, and
C. Land access and livelihood restoration.

Innovative / Distinctive Features

Comprehensive and long-term plan

• This is not a set of isolated CSR activities, but a 25-year program with a clear timeline and provisions for the post-mining phase (exit strategy).

Clear financial commitment

• A dedicated budget of $80 million is allocated for social investments through the CIP, with special funds such as the Strategic Fund (SF) and the Rapid Response Fund (RRF)—a rare practice in the Greek mining sector.

Participatory design

• Local communities are not passive recipients but actively involved in the design, selection, and evaluation of initiatives (Stakeholder Engagement Plan, grievance mechanisms).

Integration of ESG and international standards

• The CDP is aligned with EBRD, IFC Performance Standards, Responsible Gold Mining Principles (RGMPs), GRI, among others, ensuring consistency with international sustainability practices.

Interdisciplinary approach

• It combines actions across different company departments (HR, Education, Environment, Procurement, Legal) to create synergies and a multiplier effect.

Focus on strategic pillars with measurable KPIs

• Actions are not fragmented but structured around five pillars (local economy, education, gender equality, resilience, health), each supported by clear Key Performance Indicators (KPIs).

Exit plan / post-closure sustainability

• Initiatives are designed to remain operational beyond the closure of mining activities, aiming to ensure the long-term resilience of the local economy.

Emphasis on innovation and technology

• Programs in STEM education, adoption of new technologies in environmental management (ISO 14001, ISO 50001, ISO 14064), and innovative methods for water and waste management.

In summary:
The CDP stands out as long-term, financially secured, internationally certified, participatory, and strategically focused—going far beyond the traditional concept of Corporate Social Responsibility (CSR).

Investments will be allocated to municipalities and affected communities once the need and the extent to which the various communities may be impacted by mining operations have been established.

Most investments are concentrated at the municipal level, with 75% allocated to the Municipality of Aristotelis, whose communities are directly and most significantly affected. Some investments will also be directed to the neighboring communities of Volvi and Polygyros.

Projects at the regional level will primarily address issues that go beyond municipal boundaries, such as road infrastructure and water management.

National-level funding is intended for matters of national interest and high priority, relating to healthcare, safety, education, and natural disaster response/emergency relief.

Employee Participation in the CDP

Role in implementation
Employees (CSR Officers, CLOs, Grievance Coordinators, etc.) play an active role in the day-to-day implementation of the Plan – from grievance management to communication with local communities.

Training and skills development
The CDP prioritizes training programs for employees, aimed at developing new skills and enhancing their technical and social capacities.

Participation in consultation and decision-making
Committees and consultation mechanisms are foreseen, through which employee representatives are involved in monitoring and evaluating CDP actions, providing feedback and input.

Health & Safety Committees
Employees participate in joint committees with management to monitor health, safety, and working conditions, holding monthly meetings and submitting improvement proposals.

Local employment & empowerment
The Plan encourages recruitment from local communities and the active participation of employees in community development programs, ensuring that their work is directly linked to a broader social impact.

In summary: Employees are not only beneficiaries (through training, employment, and empowerment) but also active partners in the implementation and monitoring of the CDP.

The CDP focuses on three municipalities that are primarily affected – the Municipality of Aristotelis and the Municipality of Polygyros in the Halkidiki region, and the Municipality of Volvi in the Thessaloniki region – as well as on associations (parents’ associations, cultural, sports, women’s, vulnerable groups, etc.) operating within these areas. The total population of the referenced communities amounts to approximately 26,000 people (2021).

However, initiatives are not limited exclusively to these municipalities, as actions may also extend to the regional or even national level, particularly in cases related to healthcare or the response to emergency situations, such as the wildfires in the Evros region and the flooding caused by storm Daniel in Thessaly.

1. Local economic development: Creating a more favorable environment together with supporting local businesses and entrepreneurs in pursuing a more diversified set of economic activities will increase the resilience of the local economy against the impacts of changing demands from local labor and service markets during the life of the Kassandra Mines Project and beyond.

2. Educational opportunities for the new generation: By providing enhanced and improved education and skills development opportunities for local youth, the project contributes to shaping a skilled and diversified workforce that will help address gaps in the local labor market and sustainably reduce unemployment.

3. Gender equality: Through the support of childcare and the establishment of mechanisms to address gender-based violence, women will be empowered to participate more equally in the workforce, contributing to broader employment in the local economy, while also transforming gender norms and strengthening gender equality.

4. Community resilience: By helping local communities understand climate and environmental risks, as well as the mechanisms, institutions, and infrastructure required to address them, communities will develop the social and economic resources needed to withstand climate- and environment-related shocks.

5. Access to healthcare: Ensuring access to quality healthcare, particularly for the most vulnerable groups, will contribute to maintaining full and productive employment and support resilience against environmental and climate-related stressors

For 2024:

• 2.47M € total Community Investment spending
• 319 total Community Investment requests and initiatives
• 2.2M € in Aristotle Municipality (allocated across 11 communities)
• 243K € for the Eduact 2023-2024 programme. )stem education)
• 123K € for the installation of streetlights in the settlement of Palaiochori
• 107K € for the construction of a new drilling point for Megali Panagia. Potable water drilling point.
• 99K € for the construction of the new square in Olympiada
   

Maintaining social license to operate
The CDP establishes relationships of trust with local communities and stakeholders, ensuring a stable social environment for the company’s operations.

Enhancing corporate reputation & ESG compliance
The integration of ESG principles and international standards (EBRD, IFC, RGMP, GRI) strengthens the corporate profile and enables access to international capital and partnerships.

Contribution to sustainable development & diversification of the local economy
Through the Community Investment Plan (CIP) (USD 80 million), the company creates new opportunities for education, employment, and entrepreneurship, supporting the post-mining economy and strengthening social cohesion.

Strengthening employment and skills development
The creation of approximately 5,000 direct and indirect jobs, with emphasis on local hiring and gender equality, improves employment rates and reinforces the company’s social capital.

Risk reduction and regulatory compliance
By integrating environmental, social, and regulatory requirements, Hellas Gold mitigates legal and business risks, ensuring smooth operations.

Strategic advantage in partnerships
Participation in local, national, and international initiatives, as well as collaboration with governmental and social institutions, enhances the company’s position as a responsible partner.

Legacy of positive impact
The CDP includes an exit/disengagement plan to ensure that long-term benefits remain for communities after mine closure, reducing tensions and preserving a strong reputation.