Romanian Government Prevails in Legal Battle Against Canadian Mining Company

14/03/2024

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After a prolonged legal battle, the Romanian government has emerged victorious in a dispute with Canadian mining firm Gabriel Resources over a failed gold and silver mining project in the country’s mountainous western region of Rosia Montana.

Gabriel Resources, which held concession rights for the project, sought $4.4 billion in damages from the Romanian state after it withdrew its support for the venture in 2014. The project faced staunch opposition from environmentalists and local activists due to its potential environmental impact, including the displacement of families and the creation of a waste lake containing cyanide.

The ruling, delivered by the International Centre for Settlement of Investment Disputes, ordered Gabriel Resources to cover the legal costs incurred by the Romanian government during the arbitration process initiated by the Canadian company in 2015.

Romania’s Prime Minister Marcel Ciolacu expressed gratitude to the legal team for their professionalism and emphasized that it would have been unjust for Romanian citizens to bear the financial burden of a potential loss.

The contentious project, planned over a 16-year period, would have entailed the destruction of mountainous terrain and posed environmental risks. The opposition to the project culminated in widespread protests in 2013, drawing tens of thousands of demonstrators to the streets.

Rosia Montana, the site of the proposed mining project, holds significant historical value as it is home to ancient Roman mining galleries, recognized as a UNESCO World Heritage site in 2021.

Despite arguments from Gabriel Resources regarding potential job creation in the region, the project’s environmental concerns and opposition from local communities ultimately led to its abandonment.

Source and Credit: lufkindailynews.com