Gabriel Resources seeks stay of enforcement for court costs
Gabriel Resources has requested a stay of enforcement for the court costs awarded to Romania, amounting to around $10 million (9.23 million euro). The mining company made this statement on Monday.
Challenges to the Arbitral Decision
Gabriel Resources argues that the Arbitral Decision should be annulled due to fatal defects in the constitution of the ICSID tribunal. The company claims that two of the arbitrators lacked the qualities of independence and impartiality required by the ICSID Convention and failed to disclose relationships with the parties involved in the case, including Romania’s counsel.
The company believes that the arbitrators’ decision was flawed due to excesses of power exhibited during the litigation, such as disregard of applicable law, departure from rules of procedure, and failure to provide sufficient reasoning for their decisions.
Background of the Dispute
The litigation dates back to 2015 when Toronto Stock Exchange-listed Gabriel Resources initiated legal proceedings. The company’s primary focus has been on the exploration and development of the Rosia Montana project in Romania, home to a significant undeveloped gold deposit.
In March, Gabriel Resources claimed approximately $6.7 billion in damages from Romania, including interest, through their legal representation by Leaua Damcali Deaconu Paunescu.
Controversy Surrounding Rosia Montana Project
Having held a license for the Rosia Montana gold and silver mine since 2000, Gabriel Resources faced a setback in 2014 when the Romanian government halted the project. This decision came in response to widespread protests against the development that began in 2013 and continued for several months.
The project encountered strong opposition from environmentalists, local residents, and civil groups due to concerns about the use of cyanide in the mining process and the potential displacement of communities.
Insight: The Rosia Montana project has been a focal point of debates concerning environmental conservation and community welfare, underscoring the complexities of balancing economic development with environmental protection.
