Gold exploitation at Rosia Montana, Romania, is expected to begin in November 2016, as the area’s urban plan should be approved by end-2013, and Romania’s participation in the venture should increase by 5.69 percent, to 25 percent of the shares, if all permits are issued on time, according to local news agency Mediafax.

Also, the investor will have to pay the Romanian Government a royalty of 6 percent of the production’s value, according to a draft of the Agreement between the Government, Gabriel Resources and Rosia Montana Gold Corporation (RMGC) for beginning exploitation.

According to Dan Sova, the Minister for Infrastructure Projects of National Interest and Foreign Investments, negotiations still continue between the Romanian Government and the investor, writes Mediafax.

The Rosia Montana gold mining project, which has been widely opposed in Romania, has been blocked for several years because of the environment protection disputes.

Romanian Prime Minister Victor Ponta recently said that, as an MP, he would vote against the bill to be initiated related to Rosia Montana gold mining project in Romania. However, as PM, he can’t give a negative vote to the project, as he needs to attract new investments to Romania.

The Rosia Montana site in Alba county is evaluated at some 300 tonnes of gold and 1,600 tonnes of silver, and has been under concession to Roşia Montană Gold Corporation for exploitation.

Opposed by NGOs, the project has been lobbied for by politicians, including by Romania’s president Traian Basescu, who argued the gold mine would bring revenues to the state budget and much needed jobs.

The Rosia Montana Gold Corporation company is controlled by the Canadian firm Gabriel Resources, which 80.4 percent of its shares. According to the media, behind Gabriel Resources are billionaires such as John Paulson, Beny Steinmetz and Thomas Kaplan.

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