Romanians protest against gold mine plan

28 Jan 2012 21:38 Source: Reuters // Reuters * Critics say gold mine will harm western Romanian town * Town residents rally in favor of the project * Anti-govt protests held for the past two weeks By Luiza Ilie BUCHAREST, Jan 28 (Reuters) - Hundreds of Romanians protested on Saturday against a plan to set up Europe's biggest open-cast gold mine in a small Carpathian town((A major mountain system of central Europe in Slovakia, southern Poland, western Ukraine, and northeast Romania. Extending in an arc about 2,253 km (1,400 mi) long, the range links the Alps with the Balkan Mountains and is a popular year-round resort area. )), joining a wave of anti-government rallies. For the past two weeks, thousands of citizens have gathered in cities across Romania to demand the resignation of President Traian Basescu and his close ally, Prime Minister Emil Boc, as anger over austerity measures and falling living conditions have spread. The protesters have also criticised Basescu and the centrist coalition government for backing the gold mine project in the western town of Rosia Montana. However, most town residents support it, and also held a rally on Saturday. The project, which aims to use cyanide to mine 314 tonnes of gold and 1,500 tonnes of silver, has drawn fierce opposition from civic rights groups and environmentalists, who say it would destroy ancient Roman gold mines and villages. It is led by Rosia Montana Gold Corporation, majority-owned by Canada's Gabriel Resources Ltd with the Romanian government holding 19 percent. Waving Romanian flags and banners saying "United for Rosia Montana", about 300 protesters gathered outside parliament in Bucharest. They called on the government to deny Gold Corporation an environmental permit it needs to open the mine. "Never mind that this project is an utter environmental catastrophe waiting to happen, but it is also the worst possible business from a financial point of view for the Romanian state," said Vlad Rogati, a 61-year-old retired engineer at the rally. "We are being misled. The promised jobs for miners are an illusion." Most of the 2,800 residents of Rosia Montana hope the project will bring jobs and money to their impoverished town, which took a hit when a state-owned gold mine closed in 2006. Only a small group of residents refuse to sell their property to make way for the mine. Television footage showed hundreds of people at the rally. "We are standing on gold but dying of hunger", said one banner. Gold Corporation has valued the mine at $7.5 billion, of which it said Romania would get about $4 billion in direct taxes, dividends, service providers and jobs. The Environment Ministry said on Saturday it was still evaluating Gold Corporation's permit request, and that it would propose that the government grant it "only if there is certainty the investor will respect the best mining practices so that it will not harm the environment", according to local news agency Mediafax. The company proposes four gold quarries over the mine's lifespan, which would destroy four mountaintops and wipe out three villages of the 16 that make up Rosia Montana, while preserving the historical centre. (Editing by Alessandra Rizzo) ======================= INTERVIEW-Romania opposition wants new IMF deal, early election 02 Feb 2012 15:43 Source: Reuters // Reuters * Opposition leftist USL favourite to win November vote * USL leader wants early election, easing of IMF conditions * Aims to cut VAT gradually to 20 percent by 2016 * Analyst says new IMF deal would ensure predictability (Adds analyst comment) By Sam Cage and Radu Marinas BUCHAREST, Feb 2 (Reuters) - Romania's government is unable to push through reforms and should resign now to give the austerity-hit country the chance to right itself under new leaders, opposition head Victor Ponta told Reuters on Thursday. In an interview, Ponta said his leftist USL alliance - favourite to win a November parliamentary election - would continue to work with the International Monetary Fund (IMF) but aims to ease austerity measures such as value added tax (VAT). Anti-government protests spread around the country last month and opinion polls show the USL with more than 50 percent of votes. Ponta said he was keen for elections to be brought forward even if that meant temporarily installing technocrats. "To have early elections like in Spain, or to have a technocratic government like in Italy, that would be a solution to cool down a little bit the social unrest and to give fresh air and fresh energy," he said. Some analysts say the USL may not stick to the fiscal discipline of centrist Prime Minister Emil Boc, who cut public sector pay and raised VAT to maintain a 20 billion euro ($26.4 billion) IMF-led bailout. "Every day that a government which has lost the support of the people and even the support of the parliament stays in power, it's a day lost for reforms and the stability which we need," said Ponta, a 39-year-old lawyer from Bucharest. "The austerity measures were something necessary not only in Romania but across Europe," he said at the USL's offices by Bucharest's version of Paris's Arc de Triomphe. "But our economy is perhaps still the weakest in the EU." Romania is the European Union's second poorest member with an average wage of less than 350 euros a month and, while the economy grew about 2.5 percent last year, austerity and the euro zone debt crisis will keep a lid on a slow recovery. Income per capita is less than half the EU average and Boc and his ally, President Traian Basescu, have been rocked by three weeks of occasionally violent protests demanding their resignation over austerity cuts and perceived corruption. Ponta marks a change of guard for his PSD party, founded chiefly by former communists and now the dominant force in the USL, though some analysts and opponents say he remains under the influence of its founder, Moscow-educated Ion Iliescu. A keen sportsman and former national rally champion who speaks five languages, Ponta is young enough to have no links to former dictator Nicolae Ceausescu. He spoke confidently of the USL's plans and said he would work with the IMF. "It's an agreement signed by the Romanian government and whether it's that government or a new one, we should keep it," he said. The USL would sign a new deal when the existing one expires in 2013, but does not plan to draw on the available funds, he said. "It is premature to talk about post-electoral plans or alliances, though a fresh deal with the IMF would be beneficial for ensuring much needed predictability," said Ionut Dumitru, chief economist at Raiffeisen Bank in Bucharest. Ponta said he would not immediately cut value added tax to 19 percent from 24 percent - as pledged - but would aim to cut it gradually to 20 percent by 2016. The USL would also stick with the flat 16 percent tax rate on income and profit if possible, a change from a previous commitment to a progressive tax policy which some businessmen say deters investment. "Predictability of taxation is very important," Raiffeisen's Dumitru said. "If it is implemented it would create premises for a healthy economic policy." ($1 = 0.7577 euros) (Editing by Louise Ireland and Alessandra Rizzo) ====================