Romanian govt sets up new company for Rosia Montana mining project

The government set up the Minvest Rosia Montana company after the partial spin-off of the state owned miner Minvest Deva, which is the minority shareholder in the RMGC project company that plans to start mining gold and silver in Rosia Montana.

The new company will be coordinated by the Dan Sova, delegate-minister for Major Infrastructure Projects and Foreign Investors.

The spin-off decision, which was published on Wednesday in the Official Gazette, will allow the government to hold a direct corporate interest in RMGC (Rosia Montana Gold Corporation).

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The government argues that gold mining in Rosia Montana can generate several billions of US dollars in revenues from exploitation and direct contributions to the state budget.

PM Ponta said in January that the negotiations with the investor will start “immediately” after the project will be transferred to Dan Sova.

Canada-based Gabriel Resources is the main shareholder in RMGC with an 80.7 percent stake, while Romania holds 19.3 percent of the shares through Minvest Rosia Montana.

The project still requires the government’s approval of the environmental permits and the issuance of additional permits and approvals from various authorities.

The Technical Assessment Committee (TAC), which has to assess the environmental impact of the Rosia Montana project, met on May 10. This was the first meeting since November 2010.

Gabriel Resources commented it can’t say when TAC will vote on the Environmental Impact Assessment or release its recommendations to the government.

The Canadian miner reported a loss of USD 2.3 million in the first quarter. The company said it has continued its program to reduce monthly costs until the government permits the project.

Gabriel Resources has spent around USD 2 million for the organization of a referendum on mining in Rosia Montana that was invalidated due to insufficient turnout.

Ovidiu Posirca