Gabriel Resources, the majority shareholder of Roșia Montană Gold Corporation SA, has initiated legal action against various Romanian institutions and RMGC itself, contesting the seizure imposed on the company’s shares to settle a USD 10 million debt owed to Romania. The debt stems from damages awarded to Romania by the International Center for Settlement of Investment Disputes (ICSID) following the cessation of the gold mining project at Roșia Montană. Meanwhile, RMGC has filed separate lawsuits against Romanian authorities. Four cases have been brought before the Alba Tribunal, with Gabriel Resources and RMGC as plaintiffs, challenging resolutions and precautionary measures imposed by Romanian authorities to secure the debt settlement.
Tag: Romania
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Kazatomprom Successfully Completes Uranium Concentrate Delivery to Romanian Energy Company
The National Atomic Company “Kazatomprom” (hereinafter referred to as “Kazatomprom” or the “Company”) announces the successful completion of uranium concentrate deliveries to the energy company Societatea Natională “Nuclearelectrica” S.A. (“SNN”). SNN is Romania’s state-owned company in the field of electricity and heat supply, engaged in nuclear fuel production, and operates the Cernavodă Nuclear Power Plant, which accounts for approximately 20% of the country’s energy production.
In December 2022, Kazatomprom was declared the winner of an open tender by SNN for the supply of uranium dioxide for Romania’s nuclear energy needs. In accordance with the contract terms, the Company delivered natural uranium to the SNN plant. Kazatomprom exported its product through the Trans-Caspian International Transport Route (TCITR), which the Company has actively utilized since 2018.
Recognized as a reliable and preferred supplier in the global nuclear fuel market, Kazatomprom will continue diversifying its supply geography and exploring new sales markets.
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Ussuri Capital Plans $1 Billion Investment for Carbon-Neutral Steel Mill in Romania
Ussuri Capital, a Turkish investment firm, has unveiled plans to invest up to 960 million euros ($1 billion) in constructing a carbon-neutral steel mill in Romania. Completing the feasibility study and business plan in March, the company is now engaged in due diligence on potential land plots for plant location and exploring the project’s capital structure, as stated in a recent press release.
The project’s initial phase, valued at 160 million euros, will involve installing a push-pull pickling line, a cold rolling mill, and a hot-dip galvanising line, along with a colour coating line. This phase is slated for commissioning in 2027, utilizing hot rolled coils imported from non-EU countries as the initial feedstock.
The subsequent phase, estimated between 715 to 800 million euros, will encompass constructing an electric arc furnace and a continuous casting module, expected to be completed by 2030.
Upon operationalization, the Romanian plant aims to annually produce 400,000 tonnes of pickled coils, 250,000 tonnes of cold-rolled coils, and 250,000 tonnes of hot-dip galvanised coils.
Revenue projections from downstream operations are anticipated to hit 324 million euros, with an EBITDA of 38 million euros within two years post the first phase’s commissioning, yielding an EBITDA margin of roughly 12%.
Ussuri Capital, headquartered in Istanbul, focuses on green steel investments, commodities, metals, and mining.
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Romanian Government Prevails in Legal Battle Against Canadian Mining Company
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.
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Romanian minister comes up with gold mining grant scheme amid Rosia Montana scandal
Marcel Bolos, the finance minister of Romania, has proposed a grant scheme for the non-ferrous mining sector to provide essential raw materials like copper to the struggling industry, as reported by Bursa.ro. This initiative, if implemented, aims to support the sector which has faced challenges in recent times.
Of note is Bolos’s emphasis on including gold mining among the recipients of this scheme, which is particularly notable given the ongoing legal dispute surrounding the Rosia Montana gold mining project. The outcome of this litigation with Gabriel Resources, the company behind the Rosia Montana project, is still pending official confirmation, although unofficial negotiations for a resolution are reportedly ongoing.
Bolos’s comments on the Rosia Montana project have drawn attention, especially considering the project’s controversial history and the involvement of various political parties. The minister has referenced substantial compensations demanded by Gabriel Resources, purported investments made by the company, and the possibility of a “non-financial settlement” to resolve the dispute. Bolos suggests that such a settlement, which could involve allowing the project to continue, might be more favorable to Romania than paying significant financial compensation.
However, Romania Curata, an NGO opposing the gold mining project, provides additional context to Bolos’s statements. The NGO claims that Gabriel Resources holds a valid license for the Rosia Montana project and asserts that the company aims to remove the region from UNESCO’s protected sites list for Environmental, Social, and Governance (ESG) reasons. Romania Curata alleges that there may be hidden elements of corruption involved in potential agreements between the government and Gabriel Resources, with the government potentially seeking to frame any resolution as a ruling from the World Bank’s ICSID court to justify its actions.
According to Romania Curata, the risk of Romania paying billions of dollars in compensation could make it more acceptable for the government to sell any resolution as a decision mandated by an international court rather than a negotiated agreement. The NGO contends that such a scenario could ultimately lead to Rosia Montana being excluded from UNESCO’s protected sites list.
Overall, the situation surrounding the Rosia Montana project remains complex and politically charged, with multiple stakeholders and interests involved. The proposed grant scheme for the non-ferrous mining sector adds another layer to the ongoing debate about Romania’s mining industry and its future direction.
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US aiming to deploy Europe’s first small modular reactor ‘in late 2020s’, official says
The United States, with a firm resolve, is aiming to deploy the first American-made small modular nuclear reactor in Romania and Czechia by the end of the decade. A US official stated that the projected timeline for deployment is 2029.
Romania is the first country in line for this endeavor, with US company NuScale partnering with the national company Nuclear Electrica to develop the country’s inaugural small modular reactors (SMRs). During a recent visit to Bucharest, US Assistant Secretary of State Geoffrey Pyatt commended the “civil nuclear alliance with Romania” and the plans to construct a small modular reactor in the country.
Pyatt emphasized that no one has yet deployed such a technology. He stated in a video briefing with journalists that the forecasted deployment timeline is 2029. He expressed confidence in achieving this goal, highlighting the significance of the civil nuclear partnership with Romania.
SMRs are significantly smaller in size compared to traditional nuclear reactors, with a capacity of up to 300 MW(e) per unit. One of their main advantages is the ability to be factory-assembled and transported to areas with limited grid coverage.
During his visit, Pyatt announced US funding for the construction of a simulator at Bucharest’s Polytechnic University. This simulator aims to build the necessary capacity so that when Nuclear Electrica’s new SMR becomes operational, Romania will have the skilled technicians required to operate the facility.
The Romanian SMR project is part of a broader US initiative called “Project Phoenix.” This initiative aims to replace coal-fired power plants in central and eastern Europe with small modular reactors. Project proposals from Czechia, Slovakia, and Poland have been selected to participate in Project Phoenix and will receive support for feasibility studies on transitioning from coal to SMRs.
Furthermore, Kerry launched the Nuclear Expediting the Energy Transition (NEXT) program, which acts as a one-stop-shop for SMR support, providing training and advice to European and Eurasian countries on deploying SMRs.
Pyatt emphasized the importance of nuclear power in the energy transition, stating that Project Phoenix demonstrates the repurposing of past infrastructure to support cleaner, greener, and more resilient technologies.
The US’s commitment to small modular reactors was highlighted during the Three Seas initiative summit in Bucharest. The US announced a $300 million contribution to the Three Seas investment fund, which will be used to enhance connectivity and accelerate the clean energy transition in participating countries. Civil nuclear technology, along with wind, solar, and geothermal, is eligible for support.
While it is assumed that the funding from the US will be directed towards SMR projects utilizing American technology, Pyatt dismissed the notion that Project Phoenix is solely driven by US interests. He emphasized the international nature of the undertaking and cited interest in SMRs from various countries, including Bulgaria, Ukraine, Japan, Korea, and Ghana.
Pyatt also mentioned that NuScale is not the only US company developing SMRs. Larger groups like Westinghouse and GE, as well as innovative companies like TerraPower and X energy, are also involved in the development of different SMR concepts.
While acknowledging the hope that American companies will be chosen for Czechia’s large civil nuclear tender, Pyatt emphasized the enduring commitment of the US to its alliance with the Czech Republic.
The objective in both Romania and Czechia is to expedite the completion of SMR projects, moving the anticipated deployment from the 2030s to the late 2020s. This acceleration aligns with the urgency demanded by the climate crisis.
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Euro Sun Mining sells NSR royalty on its Rovina Valley project in Romania
Euro Sun Mining Inc (TSX:ESM, OTC:CPNFF) announced that it has entered into a net smelter return (NSR) royalty agreement with certain purchasers (holder) for its Rovina Valley project in Romania.
The resource exploration and development company said the holder has acquired a 1.0% NSR royalty for C$4.0 million, with C$2.0 million paid as of the date of the agreement and the remainder to be paid within nine months.
Euro Sun noted it has the right, on behalf of the holder, to sell the royalty to a third-party purchaser subject to minimum purchase prices by such third-party.
It added that should the company exercise the royalty sale right, it agrees to grant to the holder a 0.5% NSR royalty on all copper produced at the property.
As well, Euro Sun stated that in connection with the sale of the royalty, the company granted 32 million common share warrants to the holder, which shall vest only upon the company’s exercise of the royalty sale right.
Each warrant will entitle the holder to acquire one additional company common share at an exercise price of C$0.125 per share until August 25, 2028, representing a significant premium to the current market price of Euro Sun Mining’s common shares, according to the company.
Euro Sun Mining is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second-largest gold deposit in Europe.
Contact Sean at sean@proactiveinvestors.com