Gabriel Resources, the majority shareholder of Roșia Montană Gold Corporation, intends to challenge the decision in the international arbitration case targeting the Roșia Montană gold mining project, Profit.ro reported. Romania won the case in March when the International Center for Settlement of Investment Disputes in Washington (ICSID) ruled that the country wouldn’t have to pay any compensation to the Canadian company for stopping the gold mine.
Gabriel Resources asked for compensation of up to USD 6.7 billion from the Romanian state in the case. However, ICSID rejected the claims filed by Gabriel Resources and ordered the Canadian company to reimburse Romania for the arbitration costs of USD 1.43 million and for a portion of the legal – some USD 10 million in total.
“The Company intends to challenge the Arbitral Decision through the annulment process prescribed by the ICSID Convention. The annulment application will be filed on or before July 7. An annulment is not an appeal of the merits of the arbitral decision, but a procedure which would, if successful, set aside such arbitral decision and extinguish the costs order,” Gabriel Resources announced, according to Profit.ro.
Gabriel Resources started the arbitration case against Romania at ICSID in 2015. The following year, the government of prime minister Dacian Cioloș filed a request to include the ancient Roman mining site at Roșia Montană in the UNESCO heritage list. The process was suspended by the social democrat Government of Viorica Dăncilă but resumed by the liberal government of Ludovic Orban.
In July 2021, the Roșia Montană site was included in the UNESCO World Heritage list, a decision that prevents any new gold mining operations at Roșia Montană.
Gabriel Resources used this decision to support its damage claim.
irina.marica@romania-insider.com
(Photo source: Inquam Photos / Ovidiu Dumitru Matiu)
