Romania concerned about losing at least USD 2 bln in Rosia Montana gold project litigation

The Romanian government is seriously considering the possibility of losing the litigation with Gabriel Resources over the Rosia Montana gold mining project, blocked by the Romanian authorities, and having to pay at least USD 2 billion (or up to USD 6.5 billion) in compensation.

The possibility was discussed in the government meeting on January 31, according to Digi24. A final ruling is expected from the World Bank's International Center for the Settlement of Investment Disputes (ICSID) on February 10.

Canada's Gabriel Resources announced in June 2017 that it would file a CAD 5.7 billion (EUR 3.8 billion) claim in its arbitration case against Romania, accusing the country of violating investment treaties regarding its Rosia Montana project.

Since 1997, Gabriel Resources's main focus has been the exploration and development of the Rosia Montana gold and silver project in Romania to operational status.

Romania's government of technocrats headed by Dacian Ciolos asked immediately (in 2017) to place the historic site under UNESCO protection. Later, in June 2021, the site was included on UNESCO's World Heritage list – which put an end to the gold mining project.

While the Romanian authorities unanimously cheered the UNESCO decision at that time, Gabriel Resources said it went against its rights. The company stressed that "UNESCO Application and Inscription are fundamentally at odds with Romania's obligations under its investment treaties in relation to Gabriel's investments and these acts, together with other measures taken."

(Photo source: Salajean/Dreamstime.com)