ROME
Gabriel Resources CEO vows to sue if Romania kills Europe's biggest gold mine
ERIC REGULY
RTGAM
ROME - Gabriel Resources Ltd. vows to sue the Romanian government for billions
of dollars if parliament next week votes to kill the Canadian company's Rosia
Montana mine, Europe's biggest gold mining project.
"If the lower house [of parliament] does reject the project, we will go ahead
with formal notification to commence litigation for multiple breaches of
international investment treaties for up to $4-billion (U.S.)," CEO Jonathan
Henry said in an interview Wednesday morning from London, where he is based.
"Our case is very strong and we will make it very public that Romania's effort
to attract foreign investment will suffer greatly."
Mr. Henry said he expected the government's upper house, the senate, to reject
on Tuesday draft legislation that would allow the mine to open. But any
decision, for or against, would not be binding unless the bill also goes to a
vote in the much more powerful lower house, the chamber of deputies.
While Gabriel holds out some hope that the lower house will hold a serious
debate that will result in a "yes" vote, prime minister Victor Ponta on Monday
suggested that it was game over for the Canadians, who have been trying to
develop the mine for almost two decades. Mr. Ponta noted that a majority of
lawmakers opposed Gabriel's plan, which would re-open and greatly expand mines
in Transylvania that were exploited by the Romans almost 2,000 years ago. "As
long as it is obvious that there is a majority opposed to the bill, it is
useless to waste too much time on it," he said.
His statement sent Gabriel shares into free-fall as investors, convinced the
project could not overcome the political hurdle, had no future. Gabriel's
Toronto-listed shares, which closed Tuesday at 65 cents (Canadian), have lost 53
per cent this week. In 2010 and 2011, when Gabriel was confident the project's
approvals were imminent, the shares traded as high as $8.
Mr. Henry, who joined the company three years ago, hinted he would step down if
a lawsuit is launched against the Romanian government. "I am a mining CEO, not a
litigant," he said.
