Romania’s top politicians in hot water after country wins gold mining arbitration case
Romania has won a case brought by Gabriel Resources Ltd and Gabriel Resources (Jersey) seeking €4 billion after Romania announced it was withdrawing funds for a gold and silver mining project – an announcement that caused outrage towards several politicians, including the prime minister, who had previously indicated that Romania was likely to lose the case.
In 2015, Gabriel Resources sued the Romanian state after it decided to withdraw support for the Roșia Montana gold and silver mining project in Alba County before 2014, seeking €4 billion in compensation for blocking the project.
Now, the International Centre for the Settlement of Investment Disputes (ICSID) in Washington has ruled that the claimants must pay Romania €9.3 million, plus interest, to cover arbitration and court costs, the Romanian authorities announced Friday.
Gabriel Resources Ltd. expressed its strong disapproval of the decision in a statement to the Toronto Stock Exchange and is considering its options, including challenging the decision through a “set aside” process.
At the same time, the decision is a huge victory for activists who opposed the cyanide-based gold mining plan in Roșia Montana, even though politicians, most notably Prime Minister Marcel Ciolacu and Finance Minister Marcel Boloș, had previously suggested that Romania might lose the case.
Ciolacu even mentioned the possibility of a referendum on whether to allow gold and silver mining in Roșia Montana.“I promise you that all the documents, all the abuses, all the political and administrative decisions taken so that Romania loses this process, I will make them public so the Romanians can know very clearly who was wrong in this case”, Ciolacu said on 1 February.
Meanwhile, shares in Gabriel Resources surged on the Toronto Stock Exchange before trading was suspended pending the arbitration court’s decision.
On Saturday, USR President Cătălin Drula claimed there is a link between the prime minister’s comments and the rise in the company’s share price. USR has informed the Toronto Stock Exchange and intends to file a complaint with the DNA, demanding Ciolacu’s resignation for allegedly putting the interests of a particular group first.
Ciolacu dismissed the accusations, implying ulterior motives on the part of his critics.
Before the decision, Ciolacu said that former prime minister Dacian Ciolos must provide explanations regarding the Rosia Montana case, adding that there is a connection between the “Uniti Salvam Rosia Montana” movement and the emergence of USR.
”Why did Rosia Montana appear? For a political party to appear. That demonstration, ‘Uniti Salvam Rosia Montana’, in one month, turned Square into USR, where Mr. Ciolos was the leader”, Ciolacu said on Antena 3.
(Cătălina Mihai | Euractiv.ro)
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