Gabriel Resources may ask up to EUR 4 bln in cash compensation if MPs kill Rosia Montana mining bill

Update: Keith Hulley, chairman of the board of Gabriel Resources, said Henry was misquoted in the interview, denying the EUR 4 billion lawsuit figure. He added that he respects the Romanian people and its institutions – government and parliament.

Jonathan Henry, CEO of Canada-based Gabriel Resources, said on Wednesday, the company will sue the Romanian government if MPs reject the draft mining bill for Rosia Montana.

Henry told the Canadian daily Globe and Mail in an interview he expected the upper house in parliament, the senate, to reject the mining bill on Tuesday, adding the chamber of deputies will play a central role in the final vote.

“If the lower house does reject the project, we will go ahead with formal notification to commence litigation for multiple breaches of international investment treaties for up to USD 4 billion,” said Henry. “Our case is very strong and we will make it very public that Romania’s effort to attract foreign investment will suffer greatly.” Henry failed to name the treaties breached by the government. The Canadian daily suggested it would include the EU’s trade and investment laws and those of the World Trade Organization (WTO).

Although the company pins hopes on a serious debate in the chamber of deputies, the PM hinted earlier this week the bill was likely to be voted down due to insufficient political support.

The CEO made a strong point for the gold mine in Rosia Montana, warning the area will be depopulated due to lack of jobs. He added the company will use cyanide concentrations that are below the EU and international standards and that the mining field will not pollute local waters.

Henry hinted he would resign as CEO if the company sues the government. He has been at the helm of Gabriel Resources – the majority shareholder in RMGC miner – for three years.