Gabriel Resources demands 4.4 bln. USD in damages to Romanian state for Rosia Montana

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Gabriel Resources, the parent company of Roşia Montană Gold Corporation, will request a 4,4 billion dollars indemnification from the Romanian state at the International Court of Arbitration at the World Bank, for blocking the Roşia Montană mining project.

The claims of the Canadian company are based on the provisions of the investment treaty signed by Romania and Canada in 2009 and entered into force in 2011, according to a statement from Gabriel Resources.

“For more than two decades, Gabriel has acted in good faith and complied with all legal and regulatory requirements, both Romanian and of the European Union, in order to obtain the necessary permits for projects (the neighboring Roşia Montană and Bucium projects from the Apuseni Mountains – e.n.) The company has developed and committed to a full investment plan for the sustainable development of the Roşia Montană region and for all the interested parties, including the protection of cultural heritage and the repair of environmental damage caused by the historical mining activities of the state on a large scale. The Gabriel plan for Roşia Montană has always been supported by most of the people in the area”, said Jonathan Henry, CEO of Gabriel Resources, according to economica.net.

“The Government of Romania unlawfully blocked the permit granting process for the Roşia Montană Project and clearly disregarded Gabriel’s understanding with the state, regarding the existing licenses. The actions of the Romanian Government are equivalent to an expropriation of Gabriel’s investments in Romania. While Gabriel’s cociliacions and negotiations have been completely ignored by the Romanian Government, the only remaining action for the company is to continue this arbitration procedure with determination. Tomorrow, we are going to make a strong, detailed statement asking for the compensation of 5,7 billion dollars (Canadian dollars, equivalent to 4.4 billion US dollars at the exchange rate at the end of the trading session from June 27th)”, said Henry.

Thus, the company registered in Canada accuses the Romanian State of having expropriated its investments without paying compensation, of not protecting the investor’s rights and of failing to fulfill its legal obligations towards him, including ensuring fair treatment and by taking discriminatory measures against the company, breaching the investment treaty with Canada.

The company also details the schedule of hostilities at the Washington arbitration court. The Romanian State would officially respond to Gabriel Resources’s request by February 15th, 2018, followed by a counter-response from the company until September 5th, 2018. Romania is still entitled to a reply by February 19th, 2019, after which, between September 9-20, 2019, the abitral party is to convene the parties to the hearings.

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