Romanian President: Rosia Montana Project Must Be Done But With Renegotiated Profit Sharing

The project cannot be started without the European Commission's approval, said the president.

He added that the Government "needs to have the courage" to tell Romanians that the project must be carried out.

Basescu indicated the rise in the price of gold over the past five years. "What country sits on such a fortune without looking for ways to bring it out?" he added.

The president stressed the need for a good plan for environmental protection. "Those who talk about environmental destruction should visit Rosia Montana now," said Basescu.

He also said that Hungary's approval of the Rosia Montana project is not required, since Romania is a sovereign state.

The project, which is projected to cost $1 billion, is run by the Rosia Montana Gold Corporation, controlled by Canadian company Gabriel Resources, which owns 80.46% of the share capital. The Romanian state owns 19.31% of the shares.

On August 2, Prime Minister Emil Boc said the Government is waiting for a specialist opinion on the Rosia Montana project before making a decision regarding the investment. Boc said that, personally, he is not a "fan" of the project and that the current contract, which is not the most beneficial to the state, "should be renegotiated."

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