Romania would not have to pay any compensation to the Canadian mining company Gabriel Resources for stopping the gold mining project at Rosia Montana, the International Center for Settlement of Investment Disputes in Washington (ICSID) decided on March 8.
Romania’s Government issued a statement confirming the outcome of the case on March 9.
The verdict, which came almost nine years after Gabriel Resources filed its case against Romania at ICSID, was largely unexpected.
Top government officials in Bucharest, including Prime Minister Marcel Ciolacu and finance minister Marcel Bolos, had recently suggested that Romania might be forced to pay some EUR 2 billion in compensation to Gabriel Resources.
Gabriel Resources asked for compensations of up to $6.7 billion, while the minimum amount they would have settled for was the equivalent of the investments carried out for the Rosia Montana gold mining project – around $1 billion, according to finance minister Bolos. He also suggested that a non-monetary decision was possible, one that would have forced Romania to allow Gabriel Resources to continue the gold mining project at Rosia Montana. The finance minister said the Government had a strategy to negotiate with Gabriel Resources in the event of a negative outcome.
However, ICSID rejected the claims filed by Gabriel Resources and ordered the Canadian company to reimburse Romania for the arbitration costs of $1.43 million and for a portion of the legal – some EUR 8 million in total.
Romania was represented in this case by the local law firm Leaua Damcali Deaconu Paunescu – LDDP and the Swiss firm Lalive SA.
“We fought for Romania, because it was unfair that every employee and pensioner of this country should be penalized for the mistakes of politicians who acted against the interests of Romania. I thank the team of lawyers who represented Romania with professionalism, integrity, and honor! Romanians must not suffer because of the decisions of some prime ministers who put their personal interests above national interests,” Prime Minister Marcel Ciolacu said in a statement. (Romania-Insider/Ukrainian metal)