Romania mining: Rosia Montana Gold Corp halts production plans

Published on 27. September 2016., Mining

Rosia Montana Gold Corporation (RMGC), the developer of the Rosia Montana gold mining project in Romania, has decided to sell the equipment acquired for exploiting the gold mine.

The company failed to get the authorization from the Romanian authorities to kick off the project.

The decision to sell the equipment was made “due to the failure of the Romanian state to implement the Rosia Montana project”, reads a decision of the company’s shareholders cited by local Profit.ro.

The majority shareholder of RMGC, Canadian company Gabriel Resources, which controls about 80% in the company, recently took this decision.

RMGC reported losses of almost EUR 300 million last year, almost six times higher compared to 2014. The company’s revenues amounted to EUR 29 million last year, down 70% compared to 2014, whereas the expenses recorded a significant increase. They went up more than five times reaching EUR 328 million, as the company wrote off some of the investments made in the project.