Risking scandal, Videanu wants swift start of Rosia Montana project

Rosia Montana, one of the most controversial mining projects in Romania, will be included in the government's programme, with Economy Minister Adriean Videanu saying he wishes this investment to be launched quickly, after having been frozen for over two years.

This mining project in the Apuseni Mountains (W Romania) will see around 317 tonnes of gold and nearly 1,600 tonnes of silver extracted, which at today's worth amounts to around 12 billion dollars' worth of precious metal. However, the Romanian state holds only 20% of this huge project, with the rest being in the hands of Canadian investors.

"I want this project to be kicked off as soon as possible. It will be included in the government's programme," said Adriean Videanu, Minister of the Economy, at the end of last week.

Gold is the only asset whose worth has not been affected by the crisis, with one ounce of gold currently worth over 1,100 dollars, while one ounce of silver is valued at over 17 dollars.

"The project has not budged since 2007, when its evaluation was suspended by the Ministry of the Environment. All we want is for this project to be appraised. The environmental permit is the most important one out of a series of approvals necessary to secure the construction permit. It will take two years from the start of building works for the mine until gold is extracted from Rosia Montana," says Dragos Tanase, general manager of Rosia Montana Gold Corporation.

The Romanian state has 20% of the project, while Canadian-held Gabriel Resources owns 80% of Rosia Montana Gold Corporation.

The partnership between the Romanian state and Gabriel Resources was sealed in 1997, when Rosia Montana Gold Corporation was established.

One of the big obstacles to conducting this project is the use of cyanide to mine gold in Rosia Montana, which would have a major negative impact on the environment. Even in the presidential campaign, the two candidates, Mircea Geoana and Traian Basescu said the decision to start the Rosia Montana project would only be made if the studies show the environment and the archaeological sites are not affected.