Rosia Montana Gold Corporation (RMGC) has warned it could withdraw its offer to increase the State's stake in its gold mining venture if the Romanian Parliament adopts the project in a different form.

RMGC general manager Dragos Tanase said the proposal to increase Romania’s stake in the gold mine to 25 percent was in jeopardy if the Parliament drastically altered the plans.

Answering questions from MPs involved with the Rosia Montana Committee, Dragos Tanase, quoted by local news agency Mediafax, said:

“If a different project than the one we have set will be adopted, we have a problem […] The state participation increase to 25 percent was done under the conditions of the Rosia Montana project as it is structured now. It is possible our board to not maintain this offer if the project is changed into a much different form.”

RMGC's GM also noted the nine years of delays in granting the environmental permits by the Ministry, with the necessary documentation being submitted in 2004.

When asked by a member of the committee if the company would sue the Romanian state if the project were not given a green light, Tanase answered that there was no reason for the project to be rejected.

Also, when asked if the company would seek alternatives if they didn't get approval for the use of cyanide, Tanase said that the technology was the safest and most suitable for the environment and recommended by the European Commission, according to Mediafax.

Opposed by NGOs, the gold mining project at Rosia Montana triggered many controversies since Canadian firm Gabriel Resources acquired a mining licence for the site in 1999.

Thousands of people have rallied across the country since September 1, 2013, after the Romanian Government’s decision to approve draft legislation permitting Gabriel to mine the concession in central Romania.

However, the project is supported by miners living in Rosia Montana, which say jobs are much needed in the area.

Gabriel Resources is the majority owner of Rosia Montana Gold Corporation, with the Romanian State owning about 20 percent.

The project is currently pending for approval from the Romania Parliament.

Irina Popescu, irina.popescu@romania-insider.com