Canadian company Alamos Gold Inc. filed a lawsuit against Turkey for unfair expropriation and treatment of its Turkish gold mining project.

A project in northwest Turkey has sparked widespread public outcry over deforestation and the planned use of cyanide.

The claim will be filed by the Dutch subsidiary under a bilateral investment agreement between the Netherlands and Turkey, Alamos Gold Inc. said in a statement released by the Financial Post. It is expected to exceed $ 1 billion, which is in line with the value of the company's Turkish assets, the company said.

In October 2019, the Turkish government was unable to renew its mining licenses as usual, despite the fact that Alamos Gold Inc had complied with all legal and regulatory requirements to renew them. The authorities did not indicate the reason for the non-renewal or the timing of the renewal.

Throughout 2019, environmental groups and local residents protested against the Alamos Gold Inc project in the Ida Mountains, claiming that it led to the cutting of about 200,000 trees. They also fought against the planned use of cyanide for gold mining.

Alamos Gold Inc expressed hope that the arbitration process will lead to a fair way out of the impasse.

The company said it has invested over $ 250 million in Turkey and has opened a project worth over $ 1 billion. Government revenues are expected to reach $ 551 million over the life of the project.