Romanian PM Not A Fan Of Rosia Montana Gold Mining Project

Boc added he is not a "fan" of the project developed by a joint venture between Canada's Gabriel Resources and the Romanian state. He highlighted that the current contract should be reconsidered, as it is not the most advantageous for the Romanian state.

The prime minister said it is too early to say whether he will change the terms of the contract.

Culture Minister Kelemen Hunor told MEDIAFAX in an interview last week that Romania can halt the gold mining project at Rosia Montana anytime unless the joint venture developing it, Rosia Montana Gold Corporation, invests $70 million in preservation works in the area.

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 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.

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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