Canadian mining company faces opposition…again

tagged: canada, EIA, environmental impact assessment, europe, gabriel resources, mining, romaina, rosia montana

Canadian mining company faces opposition…again

Posted by Montreal Environment in Mining

Headquartered in Toronto, Gabriel Resources Ltd. holds 80% interest in a joint gold mine project with the Romanian government, known as Rosia Montana. The proposed project envisions the largest open cast cyanide gold mine in Europe, a $638 million investment for 10.1 million ounces of gold and 47.6 million ounces of silver extractive potential. At stake are: 5 Mountains, a unique cultural patrimony, 10 Churches, 12 Cemeteries and 958 farms. The project Environmental Impact Assessment (EIA) initiated in December 2004 has been completed and the Environmental Impact Statement (EIS) was released in May 2006.

Albumus Maior, NGO regrouping local community members, has been involved in an opposition campaign for the past five years, especially decrying official authorities’ fastracking of environmental permits: “the relevant environmental authorities are taking decisions regarding the gold mine proposal without applying the legal procedures governing the granting of environmental permits”. In its EIS report, the Hungarian government urges the Romanian counterpart not to give the green light to the Rosia Montana project. Hungary’s uneasiness with the project stems from a cyanide spill into the Tisza River from another Romanian mine that ultimately polluted the Danube killing 1240 tons of fish and compromising drinking water for 2.5 million people.

The surrounding local communities have a rich history of mining activities dating back to the Roman Empire. High local unemployment is a challenge for local authorities which see the mine project as a significant local development option.

Nevertheless, a poll revealed that 96% of local community members were opposed to the project. Relocation is the major contention with local communities. Gabriel Resources has not been very sympathetic: “There is forced unemployment or forced expropriation. Which one do you want?”,CEO Alan Hill was quoted. The official Gabriel Resources website states: “unemployment in Rosia Montana — 50% while Minvest was in operation [referring to a local mining company that closed its operations in 2006] — has risen above 70%, leaving many of the village’s 1,000 inhabitants jobless and destitute unless mining continues under private ownership.”

With Romania’s accession into the EU in 2007, stricter environmental guidelines now apply to EIAs. Gabriel Resources will no doubt face increased pressure from EU authorities. Already, on two occasions the European Parliament has stated its position with regards to the Rosia Montana project:

“…deep concern about the long transitional periods agreed regarding the environment chapter, particularly regarding the Rosia Montana mine development, which poses a serious environmental threat to the whole region.” (2004 European Parliament resolution)

“[Romaina] should make further efforts in protecting the environment, with special reference to the mining in Rosia Montana” (2006 Report on the Accession of Romania to the European Union, EU Committee on Foreign Affairs).