Settlement tribunal sets deadline for decision in Roșia Montană Gold Corporation v. Romania case
The Tribunal at the International Centre for Settlement of Investment Disputes in Washington, which is arbitrating the multi-billion dollar dispute between Canadian group Gabriel Resources, the majority shareholder of Roșia Montană Gold Corporation, or RMGC, and the Romanian state, has announced that it will issue a decision no later than March 12, 2024.
RMGC is the developer of the gold mining project in the Apuseni Mountains that was blocked by Romania, following massive street protests. Gabriel Resources initiated the arbitration under the Canada-Romania and United Kingdom-Romania bilateral investment treaties after the Romanian state refused to authorize the mining project. The arbitration procedure lasted over 8 years.
“This new potential delay in the tribunal’s decision is frustrating for everyone involved, but we hope that the decision will be made before this final deadline,” said Gabriel Resources' CEO and Chairman of the Board, Dragoș Tănase, cited by Profit.ro.
The company claims it is entitled to damages equal to its market value on the Toronto Stock Exchange as of July 29, 2011, when the alleged harm caused by the Romanian state supposedly took effect, plus interest, bringing the total claims against Romania to nearly USD 4.8 billion. The Canadian company later indicated that it would settle for about a quarter of the principal amount it requested as compensation from Romania for blocking the project, namely just the recovery of its actual investments, estimated at USD 760 million, plus interest.
Gabriel Resources also wants USD 64 million from Romania, representing the total expenses with lawyers and experts in the case. The Romanian state has spent several times less and also asks the tribunal to recognize and compensate its respective costs, amounting to USD 12.72 million.
Gabriel Resources Ltd. Canada owns 80.6858% of the shares of Roșia Montană Gold Corporation, with the rest of the capital controlled by the Romanian state, through Minvest Roșia Montană.
(Photo source: Salajean | Dreamstime.com)
