Canadian mining group Gabriel Resources has filed a request for arbitration against Romania before the World Bank’s International Centre for Settlement of Investment Disputes (ICSI) on the Rosia Montana gold project.
Gabriel Resources holds 80.69% of the gold mining project, which has been blocked after street protests in Romania almost two years ago. The Romanian state is a minority shareholder in the project, with 19.31%.
“Through its actions and inactions, Romania has blocked and prevented implementation of the project without due process and without compensation, effectively depriving Gabriel entirely of the value of its investments,” reads a statement by Gabriel Resources.
The group’s representatives said they got no response to the notices they’ve sent to Romania’s President and Government calling for amicable resolution.
“We have attempted dialogue with the Romanian President and Government in order to discuss an amicable resolution to the dispute. In light of their apparent and disappointing unwillingness to engage at all, it has become the company’s sole recourse to commence international arbitration,” said Jonathan Henry, President and CEO of Gabriel.
In September 2013, when tens of thousands of Romanians were protesting in the streets against the Rosia Montana gold project, Gabriel’s CEO said that the company could ask for USD 4 billion worth of damages if the project was rejected.