In Partnership for the Economy
The Rosia Montana region has been characterized by economic decline, environmental degradation, cultural distress and community anxiety. The Project at Rosia Montana is not just building a mine, it is developing a region. At a gold price of US$900 per ounce, the Project will infuse as much as US$4 billion into the Romanian economy over the life of the mine, and will generate a solid source of employment in one of Romania's poorest regions.
Job Creation
The Project is expected to create an average of 2,300 jobs during the construction phase and more than 880 jobs during the operational phase. Job creation at a local and county level will be a significant strengthening of employment for an entire region.
The Project will create many temporary and permanent new jobs that will require 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 may be transferred to other areas of industry and the commercial sector. These highly skilled workers and the tenor of a modern and well-managed mining operation in the region will contribute to the foundation of a new Romanian approach and labour pool with the skills and qualifications to compete internationally.
Economic Impact
The economic ripples from the Project will be felt in all corners of the country – with the Project not just a model mining project but also a model investment in Romania's future as it re-establishes Romania's rich natural resources industry.
Gabriel is wholly responsible for financing the investment required for the Project implementation, which amounts to approximately US$1.8 billion. Over US$450 million has already been raised and utilised. The development and construction phase will cost approximately US$1 billion and the balance of approximately US$400 million will be spent on sustainable development and closure phases.
As illustrated below, third party studies show direct benefits of more than US$4 billion for the Romanian economy; of this total US$1.8 billion will be paid directly to the state budget in the form of dividends, salary taxes, royalties and other duties. The remaining US$2.4 billion is to be spent in Romania on services and goods including human resources, electricity, transportation, construction, reagents, spare parts and other expenditure. Business opportunities for local suppliers will be important throughout the various Project phases and in order to ensure that the economic benefits are returned to the community local suppliers are prioritised.
Note: Calculated assuming gold price of US$900/oz and silver price of US$10.50/oz
Source: Oxford Policy Management 2010