Romanian President To Visit Rosia Montana For Talks On Mining Project - Sources

According to the sources, the head of state is expected to arrive in Rosia Montana at 10.30 a.m..

Basescu said recently the Rosia Montana gold mining project "must be carried out," because Romania needs it, "but only after a renegotiation of the sharing of benefits."

He also said the state needs 200 tons of gold to be put in the central bank's reserves.

The mining project at Rosia Montana is developed by Rosia Montana Gold Corporation (RMGC), a joint venture consisting of Canada's Gabriel Resources and the Romanian state, 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 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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