RSS
Romanian Gov't puts up mineral royalties, gold included
The government decided Tuesday evening to put up royalties for the exploitation of gold and other mineral resources, beginning 2012, the government's spokesperson Ioana Muntean said. According to the cited official, royalties for noble metal ores have doubled from 4 pct to 8 pct.
The royalty for oil transport and transit via the national shipping systems increased from 10 pct to 15 pct, that for natural gas underground storage operations went up from 3 pct to 5 pct, whereas the royalty for coal, ferrous and nonferrous ores increased from 4 pct to 6 pct of the value of the mining production.
The royalty for non-metallic minerals increased to 0.8 pct, whereas the charge for mineral water went up from 4 to 6 euros euros per 1,000 liters.The rise in royalties is expected to boost state budget revenues by an estimated RON 282 million, said Ioana Muntean.In 2010, estimated revenues from royalties stood at RON 1.194 billion.
Gabriel says still talking to Romania regarding gold royalty rates
Gabriel Resources said on Thursday it was still working with the government to potentially alter the its ownership and royalty rate at the Rosia Montana gold and silver project in Romania.“Gabriel awaits a formal clarification from the Romanian government on if, or how, the published statement would apply to the project,” the TSX-listed company said, adding that it the state was considering a proposal it submitted regarding changes to Rosia Montana’s ownership and royalties.The Romanian government already owns nearly 20% of the project, according to a presentation on Gabriel’s website.
The gold and silver project, located in the western part of the country, contains a 14.6-million oz measured and indicated gold resource and a 64-million oz silver resource.Gabriel aims to produce an average 500 000 oz of gold yearly over the mine’s life.The company said the mine will take 30 months to build once it receives the environmental go-ahead from the State, though there has been some opposition from non-governmental groups and some politicians.
The close proximity of Rosia Montana to Roman ruins and other historical buildings has attracted controversy, though Gabriel said it had broad political support to build the mine.The company also said that Romania’s Technical Assessment Committee (TAC)met on November 29 to discuss technical and other issues regarding the project’s environmental assessment.
Gabriel said in a statement it was “encouraged by the constructive nature of the discussions held and is awaiting formal feedback from the TAC as to whether further meetings or documentation will be requested”.The company boasts heavyweight shareholders including Paulson & Co, with 16%, and Newmont Mining, which owns 13%.Its stock rose 2.6% by late Thursday trade to hit C$5.89 a share, valuing the firm at C$2.2-billion.