Gabriel Resources wants to cut costs in Romania until new Govt. starts licensing process

Gabriel Resources, the private investor behind the Rosia Montana gold mining project in Romania, wants to reduce costs until the Romanian Government advances with the licensing process for the project, said the Canadian Company. Gabriel Resources posted a loss of USD 2.6 million in the first quarter of 2012, twice as much as in the first quarter of 2011.

Its latest financial report shows that the company is currently analyzing expenses in all areas, to substantially reduce monthly costs until the Government starts the licensing process for the project. Gabriel Resources' message comes soon after the political scene in Romania dramatically changed, following the Government's fall and the opposition taking power. Previously, Gabriel Resources representatives said they were hoping for the Romanian Government to first talk to the company, before going public and making statements about the project. The Rosia Montana project, and similar projects in Romania, and even the country, need political stability, said Jonathan Henry, executive director of Gabriel Resources, in an interview for Reuters. According to the media, Gabriel Resources is controlled by business tycoons such as John Paulson, Beny Steinmetz and Thomas Kaplan. The gold mining project has met with disapproval from various environmental NGOs, which have campaigned against it for years. The new Government's message about Rosia Montana was that the project will be re-analyzed in a transparent way and through democratic dialogue, so that decisions are made in the national interest. Rosia Montana holds Romania’s largest gold reserves, estimated at 300 tonnes of gold and 1,600 tonnes of silver. Gabriel Resources signed a concession agreement for the Rosia Montana project, but the project has not been started, as NGOs opposed it and successive Romanian Governments are yet to issue environmental approval. editor@romania-insider.com