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Romania’s lower house of parliament may have put the last nail in the coffin for Canada’s Gabriel Resources (TSX:GBU) Rosia Montana project, by rejecting Tuesday a bill that would have allowed the firm to proceed with plans to set up Europe’s biggest open-pit gold mine.
The London-based company, reports Romania Insider, has put the mine plan on hold indefinitely, though it could theoretically be brought round if a new bill were sent forward at a later stage.
The bill, initially approved by the country’s ruling party, drew thousands of anti-mine protesters into the streets last year.
The bill, initially approved by the country’s ruling party, drew thousands of anti-mine protesters into the streets across the European Union country last year, prompting the parliamentary commission appointed to rework the project to reject it in November.
Things took a turn for the worse in December, when the Romanian Parliament ruled against a bill that would’ve allowed the Rosia Montana project to proceed.
The lower house had the final say, and it clearly expressed its opposition to the draft law Tuesday with 302 votes against and only one in favour.
For years Romanians have protested against Rosia Montana, which they deem as an environmentally risky project and an even larger problem of political corruption.
The pollution concerns are tied to the company’s planned use of cyanide to extract gold and silver from the ore.
To date the company has waited more than 15 years for permits for the project, which costs are up to about $1.5 billion.
While Gabriel Resources did not comment on the news, it has said in March it was unable at the time to provide shareholders with any guidance on time frames for its flagship project.
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6 Comments
st.
What a lot of people don’t realize is that cyanide extraction is an effective method to extract gold. The issue is not with the technology, but rather with the unreliability of politicians. If built correctly, it’s reasonably safe and can provide a pretty significant income to the region. The issue is that politicians in Romania are corrupt and can be paid off pretty easily. The political system in Romania is a joke, and THAT needs to be changed first. Mining can then proceed. It seems that some people don’t realize that mining isn’t a luxury in modern society, it’s a requirement. We need the gold, it’s really that simple. Romania, as a nation, needs to put their political system in order before projects like this can reliably progress. Too bad the Romanian people are so complacent with the stupidity of their leaders. This is not what democracy is about …
Mihai Papuc
@disqus_oXluNuTONP:disqus You are absolutely right about our politicians – they are stupid. But there’s one thing you don’t realize: they all wanted this project, and only the strongest civic movement in Romania since 1990 made them give up.
One more thing: think about the place that is the most significant to your country, and then imagine an open pit mine on top of it. Because that is exactly what this company wants to do in Romania: replace the country’s oldest village with a huge open pit (actually, four of them, but who’s counting, right?)
Agassi
There is enough gold to mine in Canada. These companies are in Romania and elsewhere just because in those places it is easy to walk away from all the mess they create. They are there to “invest” (bribe), and “to create jobs” (to pay the locals – lower quality people in their minds – to destroy their own lands while they tell them how the westerners loves them). Nice to see people fighting including turning against corrupt officials and forcing to change things.
Mihai Papuc
“As the likelihood – and threat – of opencast mining activities in Roşia Montană are rapidly diminishing, the need to formulate an alternative, more diversified and sustainable development strategy for the region becomes essential. The crucial components for such a development strategy must come from within the local community, but Europa Nostra and the European Investment Bank Institute can and will support them in this effort.” Guy Clausse, Dean of the European Investment Bank Institute
Source: http://www.europanostra.org/news/471/
Grasu200
i still think it would be beneficial for all parties to get this going, under new terms that would allocate a higher percentage of the or to the government with a clear commitment to use the funds for re-forestation.
bspurlockocta
Can Gabriel Resources Win Arbitration Case with Romania?
http://www.octafinance.com/is-gabriel-resources-tsegbu-running-out-of-choices-victor-pontas-corruption-allegations-arent-going-to-change-anything/72485/