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Canada
Romania

Gabriel Resources challenges ICSID decision on gold mining project in Romania

Jul 9, 2024, 11:59:29 AMArticle by Alexandru Cristea
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July 9 (SeeNews) - Canadian mining company Gabriel Resources said it has filed a claim seeking the annulment of a decision by the World Bank's International Centre for Settlement of Investment Disputes (ICSID) in March, which dismissed the company's claims against Romania for compensations for its unsuccessful Rosia Montana gold mining project.

Gabriel Resources challenges ICSID decision on gold mining project in Romania
Open pit at Rosia Montana. Author: Gabriel Resources. Licence: All rights reserved.

Gabriel Resources has also requested a stay of enforcement for the court costs awarded to Romania, in the amount of around $10 million (9.23 million euro), the mining company said in a statement on Monday.

"The Arbitral Decision must be annulled due to fatal defects in the constitution of the ICSID tribunal given that two of the arbitrators who rendered the majority decision [...] lacked the qualities of independence and impartiality that the ICSID Convention requires, and failed to adequately disclose relationships between themselves and with the parties involved in the case, including Romania’s counsel," the company said.

The mining company claims that the arbitrators' decision is flawed due to excesses of power that were manifested over the course of the litigation, including disregard of the applicable law, departure from rules of procedure, and failure to state reasons for decisions made on several aspects of the arbitration.

The litigation was initiated in 2015 by Toronto Stock Exchange-listed Gabriel Resources, whose main business has been the exploration and development of the Rosia Montana project in Romania, a major undeveloped gold deposit.

Gabriel Resources claimed around $6.7 billion in damages from Romania, including interest, Leaua Damcali Deaconu Paunescu, the Romanian team of lawyers who represented Romania in the case, said in a press release in March.

Gabriel Resources has held since 2000 a licence for the Rosia Montana gold and silver mine in Romania's Alba county. The project was blocked by the Romanian state in 2014, following nationwide protests against its development which started in the fall of 2013 and lasted several months. The project faced significant opposition from environmentalists, local residents, and various civil groups, mainly due to concerns over the usage of cyanide in the mining process and the displacement of local communities.

($ = 0.9226 euro)

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