Romania Could Earn As Much As $30 B From Gold Mine
Canadian miner Gabriel Resources Ltd., whose Rosia Montana gold mine project in Romania continues to get delayed due to the absence of a key environmental permit, said Romania stands to lose some $30 billion in earnings as the project gets stalled.
"In total we have over $30 billion of economic benefits that come out of this project and remain in Romania, this equates to somewhere between 70 and 90 per cent of the total benefits," Jonathan Henry, Chief Executive Officer of Gabriel Resources Ltd., told AFP.
The Rosia Montana gold mine project has drawn massive opposition from environmentalists, although the Romanian government had said it continues to be its priority project for the jobs expected to be online once the project kicks off.
Rosia Montana Gold Corporation plans to use 12,000 tonnes of cyanide a year to extract the gold from the open-cast mine, a method that will endanger the environment and Roman-era mining galleries, according to individuals and groups opposed to the project.
Moreover, a recent court ruling against zoning plans submitted by Gabriel Resources Ltd. earlier had been denied, which may all the more delay the process, Attila Korodi, outgoing Romanian environment minister, said on Thursday.
The Rosia Montana gold mine is operated by Rosia Montana Gold Corporation, which is 80 per cent owned by Gabriel Resources Ltd. The balance is controlled by the Romanian state. Rosia Montana Gold Corporation plans to extract some 300 tonnes of gold and 1,600 tonnes of silver near the village of Rosia Montana over the next 16 years. The village is said to hold Europe's largest gold deposits.