A True Partnership for the Economy
The Rosia Montana region has been devastated by economic decline, environmental degradation, cultural distress and community anxiety since the closure of the old mining operation. Our new investment at Rosia Montana is not just building a mine, it is lifting a region.
The Project is expected to create over 3,600 jobs, 2,300 direct jobs during the construction phase and more than 880 direct jobs during the operational phase. Job creation at a local and county level will be a significant strengthening of the entire region’s economy.
The Project will create both temporary and permanent new jobs requiring extensive training in modern mining and process plant methods, operational, maintenance, and personal safety skills, environmental monitoring and management control and awareness, and the management of product quality. Such skills and their related benefits will boost other areas of industry and the commercial sector. These highly skilled workers, and their experience from a modern and well-managed mining operation in the region, will help establish a new commercial mind-set and labour pool with the skills and qualifications to compete internationally.
The rising economic tide from Rosia Montana will be felt in all corners of the country. We are not just building a model mining project but also a model investment in Romania's future.
Gabriel will directly invest the approximately US$2.7 billion required for the Project implementation. Over US$550 million has already been spent in Romania. The development and construction phase will cost approximately US$1.4 billion and the balance of approximately US$570 million will be spent on sustainable development. A further US$150 million will be committed during the closure phase.
As illustrated below, the direct benefits stemming from the development are estimated at more than US$5.3 billion for the Romanian economy based on an equity interest of 25% in RMGC for the Romanian State, levels previously discussed in negotiations in prior years but not yet agreed, and an increased royalty to 6%. Of this total US$2.3 billion will be paid directly to the state budget in the form of dividends, salary taxes, royalties and other duties. The remaining US$3.0 billion is to be spent in Romania on services and goods including human resources, electricity, transportation, construction, reagents, spare parts and other expenditure.
Local companies will benefit directly during all Project phases. Indeed, in order to ensure that the economic benefits are returned to the community Gabriel will prioritise the capabilities of local suppliers.
Note: Calculated assuming gold price of US$1200/oz and silver price of US$20/oz