Romania endorses law for major gold mining project Rosia Montana

By bne IntelliNews August 28, 2013

Romania’s government has endorsed the law that regulates the operations at the Rosia Montana major gold mining project and submitted it for further approval to the parliament, Mediafax reported. The bill was not on the government meeting’s agenda, but its approval was confirmed by a government note released later, the news agency said.

Extraction operations at Rosia Montana are scheduled to begin in November 2016 after all necessary permits are issued by the respective authorities (expected at end-2013), according to the draft agreement between the government and the project operator - Rosia Montana Gold Corporation [RMGC], Ziarul Financiar daily reported on August 20. The key controversy is related to the cyanide technology to be used at the mine.

The main stipulations of the law endorsed by the government refer to: i. the majority investor giving up gradually a supplementary 5.7% stake in the project to the Romanian state as the permits are issued [the state participation would hit 25%], ii. extraction royalties of 6% [versus the 4% regular rate for other mineral extraction projects] and iii. the project company finances the conservation and revitalisation of cultural heritage in the region with specific amounts of money.

The project is also declared by law as being of national priority – meaning that the permits are issued under specific, quicker terms by the relevant authorities.

The total revenue to the central and local budgets is estimated at USD 2.3bn, calculated at the current average price of gold (USD 1,200 per ounce). Other benefits for the local economy are estimated at USD 2.9bn. The total impact on the Romanian economy is expected to reach USD 5.2bn, the draft memorandum reads.

Related Articles

Romanian software producer Bitdefender takes over French peer Profil Technology

Romanian security technology company Bitdefender has acquired its French peer Profil Technology as part of its expansion strategy on the corporate segment.  The terms of the deal were not ... more

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

EBRD, EIB lend €82mn to Moldova for key gas pipeline toward Romania

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) will lend €41mn each and the European Union will add a €10mn grant to fund a pipeline to link ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss