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Article

14 Feb 2017

Author:
Corporate Europe Observatory

Gabriel Resources' lawsuit against Romania highlights problems with investor-state dispute settlement & intl. trade deals, says report

"Gold-digging through investor-state lawsuits. Canadian mining corporation sues to force Romanians to accept toxic Roşia Montană goldmine", 13 Feb 2017

Canadian mining company Gabriel Resources is using an investor-state lawsuit to push through its illegal toxic gold and silver mine...The project has faced strong community resistance and is on hold after Romanian courts found that Gabriel had illegally obtained several permits required to operate the mine...Gabriel Resources is now...suing Romania in an international investment tribunal [investor-state dispute settlement (ISDS)], potentially demanding billions in taxpayer money as compensation because of the country’s alleged ‘failure’ to issue the permits.  The lawsuit foreshadows the massive claims which could hit the EU and its member states if trade deals such as the EU-Canada CETA get concluded...[T]he town of Roşia Montană in Romania have fought against a proposed multi-billion dollar mining project, which would have destroyed their home and the surrounding environment...But the project’s majority owner, Canadian company Gabriel Resources, is now using a parallel legal system for foreign investors...to demand Romanians pay...for lost profits...To avoid facing these costs the Romanian Government may be forced to open the mine after all...Meanwhile the European Union is negotiating a number of trade deals which threaten to massively expand the ISDS regime...[Also refers to Newmont]