The Law allowing exploitation in Rosia Montana, approved by the Government. The Parliament to take the final decision

The draft bill regulating ore exploitation in the Rosia Montana parameter was approved in the Tuesday Government meeting and will be submitted to Parliament for adoption, official sources say according to Mediafax.

A month ago, PM Ponta announced the negotiations for the Rosia Montana project would be concluded at the beginning of the parliamentary session, in September, and the exploitation works would start if the Parliament adopted the draft law submitted by the Government to that effect.

Exploitation is scheduled to start in November 2016, after the regional development plan would be adopted by the end of the year.

The state’s ownership would go up by 5,69%, to 25% of the share, provided that the permits necessary are issued on time for the exploitation to start, according to a draft agreement between the Government, Gabriel Resources and Rosia Montana Gold Corporation.

The investor will pay the Government a royalty of 6% of the value. The state will have the option to request Rosia Montana Gold Corporation (RMGC) that the royalty payments be made ​​in kind, according to the project.

The state’s ownership will go up to 25% in two stages, if cumulative fulfillment of several obligations on the Romanian authorities part is achieved.

In the first stage, a stake of 3.6858% of the shares will be transferred, resulting in a state participation of 23%, but with the requirement that environmental agreement on the project implementation issued and approved by Government Decision should not contain significant amendments to the project submitted and proposed by the report and feasibility study, and the bill to approve the exploitation be adopted.

In the second stage, a 2% of the shares will be transferred to the state, but provided that all permits to begin commercial operation have been issued according to deadlines which have not registered significant delays to the licensing terms presented in the authorization schedule and the draft bill approving the exploitation works should be in force and take effect.

Regarding the benefits for the Romanian state, the two sides estimate the RMP will generate for the state budget and local budgets revenues approximately $ 2.3 billion and a direct effect on the Romanian economy of about $ 2.9 billion at a reference price of $ 1,200 / ounce (bullion hoard), in total.

Direct economic benefits the project fosters are estimated at over 5,2 billion dollars.