Romania Can Halt Rosia Montana Mining Project Unless Developer Invests $70M In Preservation Works

Kelemen said it is his priority as minister to save the country's archeological heritage which, however, is rapidly degrading and would be irretrievably lost in a few years unless investments are made right away.

The gold mining project, developed by a joint venture between Canada's Gabriel Resources and the Romanian state, has recently received a key permit allowing works to continue in the area, a move that was met with ample protest from environmental activists and NGOs who called for the minister's resignation.

The minister said in the interview the ultimate decision to give the go-ahead for the project, which entails cyanide mining, will belong to the Government and will be based on expert opinions not political arguments. He added the project will not get green light if it is found it poses health risks.

Kelemen said Romania has $140 million to invest in preserving its national patrimony, half of which will go to Rosia Montana. The $70 million should be invested by Rosia Montana Gold Corporation, otherwise Romania can hit the breaks on the gold mining project.

"That $70 million is a guarantee that Romania can save and restore its architectural and archeological patrimony. It's not a trade-off (for key permits allowing the project to continue -e.n.)," the minister said in the interview.

The minister said he understands the concerns expressed by NGOs and environmental activists but the ministry needs to come up with solutions.

"If we wait another 20 years, we risk losing the entire heritage at Rosia Montana, as archeological sites and historical monuments in the area continue to degrade from natural causes," said Kelemen.

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, through which the company expects to extract 626,000 ounces of gold per year for five years since the launch of the mine. An ounce of gold weighs 31.1 grams.

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.

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