Romanian Presidential Adviser Quits Over Gold Mining Project Differences

"I have discussed with President Traian Basescu and informed him of my resignation from the position of presidential adviser, which he accepted. I will submit my written resignation on Monday," he said, adding his resignation is related to the investment in Rosia Montana, which he opposes and the head of state backs.

"As presidential adviser, I am supposed to support the president's initiatives but in this case I cannot so I have decided the best solution would be for me to resign," Kovacs said.

Kovacs opposes the gold mining project, which entails the use of cyanide, while Basescu has recently expressed his support for the investment, in which the Romanian state holds nearly 20%.

Kovacs recently signed a petition together with an NGO calling on the Culture Ministry to withdraw an archeological discharge certificate granted in July, a key permit for the continuation of the mining project.

Kovacs was appointed presidential adviser for national minorities' issues in January 2009.

Rosia Montana Gold Corporation (RMGC), a joint venture consisting of Canada's Gabriel Resources and the Romanian state, is developing the mining project at Rosia Montana, in the western Romanian Apuseni Mountains, with projected costs reaching more than $1 billion.

Gabriel Resources owns 80.46% of RMGC, while the Romanian state (19.31%) and other shareholders (0.23%) control the rest.

Romanian environmental NGOs have been protesting the project, which involves cyanide mining, since it was put on the table in the 1990s and have proposed to promote tourism and agriculture in the otherwise poor area.

Romania's president has repeatedly said in recent weeks the project "must be carried out" because Romania needs it, and called for the renegotiation of the sharing of benefits.

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