Rosia Montana Gold Corporation to take USD 700 mln loan for Romania gold mining project

Rosia Montană Gold Corporation (RMCG) will borrow USD 700 million from a consortium of banks led by the Royal Bank of Canada Scotland to cover the costs of the gold mining project in Romania. The loan would cover two thirds of the needed amount for the Romanian gold mine, which should reach USD 1.7 billion.

So far, RMGC has spent USD 470 million on the project. Building the mine and the equipments will require USD 850 million, while USD 145 million will be spent each year on operations, according to company representatives. 'During the exploitation, around 20 percent is lost, so the project's yield is of 80 percent, meaning 245 tonnes of gold and 900 tonnes of silver. With the value of the bead estimated at USD 7.5 billion, at a price of USD 900 an ounce […] Over 56 percent of the revenues generated by this project stay in the Romanian economy,” said Cecilia Szentesy, technical director with RMGC. The state budget would get USD 1.8 billion, and the economy would be fueled by an extra USD 2.4 billion as services, materials and salaries, according to Szentesy. The gold mining project in Rosia Montana, which has been opposed by NGOs who feared it would damage the environment, but which has the support of the Romanian President Traian Basescu, is currently pending the environmental review. Rosia Montana Gold Corporation is jointly held by Canadian Gabriel Resources and the Romanian state. The state has a 19.3 percent stake in the project, through state-run company Minvest Deva. The project has recently re-sparkled public debate. Presidential adviser on national minorities Peter Eckstein Kovacs has recently resigned as he could not support the Rosia Montana gold mining project that Romanian president Traian Basescu has publicly approved. editor@romania-insider.com (photo source: Gabriel Respources; in picture: Cetate quarry in Rosia Montana)