Romania’s ruling coalition abandons major gold mining project

By bne IntelliNews September 10, 2013

Romania’s ruling coalition has withdrawn its support to the major gold mining project Rosia Montana - and the main private partner in the project – Canada-registered Gabriel Resources [with a 75% share], warned of court trials, HotNews reported.

PM Victor Ponta has declared the project “closed” and recommended to the ruling party members in parliament to speed up the regular voting procedures on a bill initially aimed at accelerating the project.

In principle, the project could go forward without the bill – based on regular procedures, but it is hard to believe agencies supervised by the government would issue the functioning permits without the political support after the recent developments. They would rather delay the permits based on bureaucratic grounds until the exploitation licence expires.

Gabriel Resources would “commence litigation for multiple breaches of international investment treaties,” the company announced in a press release.

As we reported, the government has endorsed a bill aimed at speeding up the Rosia Montana project that has been lagging for years, but it submitted the document to the parliament for further endorsement. The document, never disclosed, stipulated that the Romanian state would issue functioning permits under a specified schedule in exchange for higher [over 25%] public participation in the project.

After eight days of street protests against the environmental effects of the project, the president of the junior ruling coalition PNL, Crin Antonescu [also head of the Senate], announced it no longer supports the project.

PM Ponta, also president of the senior ruling coalition, announced that the project should be quickly rejected by lawmakers – indicating that most of the ruling coalition MPs would vote against. Apparently there was no coordination between the two and Antonescu’s firm statement against the project visibly annoyed Ponta. Nonetheless, Ponta himself has voiced statements against the project previously – which looked somehow awkward after when becoming a PM he endorsed the bill.

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

Bucharest urges local government to borrow from banks despite warnings from IMF and EC

Romania’s local administration can co-finance the EU-funded projects from bank loans at interest rates lower than the financing cost of the Treasury, Romania’s central government reportedly ... more

IPO of Romanian telco RCS&RDS reportedly planned for May

A group of shareholders of Romanian diversified telecoms group RCS&RDS want to sell 20%-30% of the group’s shares in an IPO, Ziarul Financiar daily reported. The IPO is expected to take place ... 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