Romanian-Canadian Rosia Montana Gold Corp. To Scale Back Activities

In light of the suspension of the Environment Impact Assessment review process, the company, 80% owned by US mining company Gabriel Resources and 20% by the Romanian state, said it would scale back its activities and even lay off employees.

The announcement was made by Gabriel Resources CEO Alan Hill who said they can no longer afford to employ people as they do not have work for them to do. 

"Most disappointing of all," says Gabriel Resources CEO Alan Hill, "is that we have reached the point where we can no longer employ people when we do not have work for them to do. As a result, we must let a lot of our staff go, as most of our activities have been stopped with the suspension of the EIA review process. Our effort and resources will be focused on getting the EIA back on track and getting this project permitted."

Hill added the company must also suspend the land acquisition program for the new exploitation which started in 2002.

"Unfortunately, the company also has no choice but to suspend its land acquisition program" Hill continued. To date, 73% of the properties within the project footprint have been bought on a 'willing buyer, willing seller' basis, in compliance with World Bank resettlement guidelines. The program will be suspended in February 2008, with the exact date decided in consultation with affected stakeholders.