TORONTO – Gabriel Resources Ltd. (TSX:GBU) says it remains committed to its controversial Rosia Montana project in Romania after that country announced it would not allow the Canadian company to develop the mine.
The Romanian government said Monday it would not allow Gabriel Resources to develop what would have been Europe’s biggest open gold mine.
The announcement by Prime Minister Victor Ponta came shortly before a parliamentary commission voted down a bill that would have permitted the project.
The company said Tuesday a report by a special committee of the chamber of deputies and the senate in Romania proposes a new generic legal framework for gold and silver mines such as the company’s
Gabriel president and chief executive Jonathan Henry said called the special committee report a “first step in defining the next phase of developing Rosia Montana.”
“Our goal remains to bring the project through to a reality that will significantly benefit Romania and the people of Rosia Montana,” Henry said in a statement.
A spokesman for the Department of Foreign Affairs said it is monitoring the process before Romania’s Parliament.
The Rosia Montana would be one of Europe’s biggest gold mines, but it has faced opposition over its planned use of cyanide in the processing.
Gabriel has been waiting for 14 years for permits for the mine and has promised to develop the mine in a sustainable way.