Romania’s President, Traian Basescu, has proposed a vote on allowing development of Europe’s largest gold mine project, following protests against technology that made the country home to one of the continent’s worst environmental disasters.

A day after thousands of demonstrators rallied against the use of cyanide in gold mining, Basescu said last week he might call a referendum next year on the Rosia Montana mine. That may delay the project, for which Canada-based Gabriel Resources says it could “hopefully” receive approval by November.

The rallies followed government’s unveil- ing last week of a draft law to raise the State’s stake in the project, rekindling anger over the 2000 Baia Mare spill. Listed by the United Nations Environment Programme alongside Chernobyl as one of Europe’s major human-caused disasters, the spill happened when a dam holding back mine debris burst, flooding the Somes, Tiza and Danube rivers with tens of thousands of tons of cyanide-contaminated water.

“The biggest scare about the Rosia Montana mine is the cyanide process, which should have been discussed with experts,” Basescu said on newspaper Adevarul’s website. He stated that “society is rightfully reacting to this” because Romania has suffered from the Baia Mare spill.

Prime Minister Victor Ponta showed similar support, saying in a televised speech last week from Bucharest that a referendum was “a good idea”, after government had finished the “technical negotiations” on the project. The project is subject to a final decision by Parliament.

Last month, Gabriel Resources said if Parliament adopted the Bill – which increases the State’s stake in the mine to 25% and raises its royalties by half to 6% – it would be able to accelerate its development of Rosia Montana and other mining projects. Gabriel expects to get Parliamentary approval as soon as November, says Jonathan Henry.

Basescu says a referendum may take place during European Parliament elections next year. Such a vote would need a minimum turnout of 50 to be valid, a difficult prospect in a country where voter participation is historically low.
Opposition Rising

With proven reserves, estimated by Gabriel, of 10.1-million ounces of gold and 47.6- million ounces of silver, Rosia Montana is worth about $15-billion, or a tenth of Romania’s yearly output.

The company, which has spent about $400-million and more than a decade trying to develop the gold mine, says it will be Europe’s biggest when it is operational.

The draft law has stoked opposition. About 2 000 people took to the streets in Bucharest last week and hundreds protested in big cities across the country against the project.

The mine may produce an average of 375 000 oz of gold a year and cost $1.5- billion, says Stephen Walker, a Toronto-based analyst at Royal Bank of Canada.