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Gabriel Resources seeks Romanian government clarification position for project


 

TORONTO – Gabriel Resources Ltd. (TSX:GBU) says it has put in an urgent request for the Romanian government to clarify whether it plans to block debate on draft legislation affecting its Rosia Montana gold project.

The Toronto-based company said Monday that media reports, citing the Romanian prime minister and other ministers, say the government will use an emergency procedure to halt debate in of draft legislation in the two houses of parliament.

The Associated Press reported Monday that Romania’s prime minister Victor Ponta said he would look for other ways to find jobs in the deprived area, where thousands have protested this week against the proposed mine.

The leader of two main parties said Monday they opposed the project, which the Romanian parliament is still due to vote on.

Gabriel Resources says the move comes despite government approval of the draft legislation in August, as well as polls that suggest support for the project, and is looking into the matter to find out what was actually said.

If the draft legislation is rejected, the miner says it will then assess “all possible actions” open to it, including the possibility of a lawsuit for multiple breaches of international investment treaties.

Gabriel also urged markets not to read too much into the news for now, saying it would “advise caution in the trading of its shares.”

Gabriel Resources has struggled for several years to overcome opposition to the project, which opponents say poses too much of an environmental risk because it uses cyanide in the extraction process.

Supporters say the mine would bring vital jobs and investment.

— With files from the Associated Press


 
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Gabriel Resources seeks Romanian government clarification position for project

  1. If you really want relevant information regarding the Rosia Montana Project start watching the facebook posts of thousands of romanians and not the usual media channels.

    There is a total media blackout regarding this project and the on-going protests in Romania because of the profitable media contracts that RMCG has signed with the major TV outlets in our country.

  2. This project is an outrage to anybody who takes the time to research its implications. The project would entail razing 4 mountains (2 of which are classified as historical monuments), destroying Roman archaeological sites that are 1900 years old, 3 villages including about 900 houses, 7 churches and 11 cemeteries. The mining process will leave behind an open pit spread over 1275 hectares and a waste lake containing 250,000 tons of cyanide water. As a point of reference, in 2000 also in Romania, an Australian mine operator had a 100 ton leakage from a similar pond. The toxic waste spilled in the Somes river, then it passed into the Tisza and the Danube, devastating the ecosystem in Romania, Hungary and Serbia. The mine operator denied all responsibility, despite an investigation by the UN which held it liable.

    In exchange for all this the proposed project will bring a grand total of 634 jobs over 16 years and will pay 6% royalties to the Romanian state, partly offset by the income tax exemption the company secured for the first 10 years of the project.

    The Romanian media, in a gesture reminiscent of the Communist dictatorship years, is not covering this story and it constantly downplays the extent of the protests and the protesters`motivations.

    It`s true the area needs investment and economic development but a 16 year project aimed to deplete everything depletable is not economic development. At the end of the project the area will be just as poor with no gold left to mine and an environmental catastrophe on their hands.

    To add insult to injury, the Romanian government has been trying to ram a law through, allowing Gabriel Resources to directly expropriate any private property it deems necessary for its project and to placing its interests above the reach of the courts.

    Please stop and think about your reaction if a foreign company tried to do that in Canada. FYI, Gabriel Resources is Canadian incorporated but backed by american hedge fund billionaire Jon Paulson, among others. It is certainly not serving Canadian or Romanian interests.

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