The Romanian Government is sending mixed signals about the fate of the Rosia Montana gold mining project, after Economy Minister Daniel Chitoiu said it would start this year and the Prime Minister Victor Ponta contradicted him.

“The economy ministry meant to say the Rosia Montana project will not start this year, but he forgot to include the 'not' in the sentence,” said the PM. After that, the PM said the Economy Minister was actually referring to the Cupru Min privatization project.

Asked by NGOs whether he is considering firing the Economy Minister over his statement, the PM said  "it would not be a bad idea", but that Chitoiu explained the situation and the misunderstanding to him. Victor Ponta recently attended the Green Awards gala and is known for being an ecologist. His wife Daciana Sarbu is also a public opponent of the gold mining project.

Chitoiu said last week that he was convinced that the Rosia Montana project will start this year, also saying that mining will continue through the country, but the intention is to exploit resources efficiently. He also said that a decision will be made together with the Environment Minister Rovana Plumb, whose ministry needs to give the green light and then establish guarantees for investors.

Chitoiu visited Rosia Montana last week, where he talked with villagers and local party members from the Social Liberal Union (USL).

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.

Gabriel Resources’ message came 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.

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 started, as NGOs opposed it and successive Romanian Governments are yet to issue environmental approval.

editor@romania-insider.com