Rosia Montana: Political and Social Risk Management in the Land of Dracula

635 Words Feb 27th, 2014 3 Pages
Business Ethics - Rosia Montana: Political and Social Risk Management in the Land of Dracula

What might opponents have done to raise the profile of their concerns and slow or stop the mine's redevelopment?
A group of politicians and non-governmental organizations were trying to block the redevelopment of the gold mine at Rosia Montana. At first, these seemed to be the only opponent groups fighting against the revival of this project, nevertheless new associations and recently formed group of citizens began to protest because of the negative impact and threats that this project represented.

Gabriel Resources’ initial offer seemed to be attractive in terms of job creation (2000 additional jobs), industry development (gold production)
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They could’ve demanded to abolish the tax shield provided as to provide some funding to recuperate the region. This way, the project seemed less profitable. Moreover they should’ve demanded a minimum number of firms to participate in the process (normal procedure in any public tender) and evaluate under a strictly public scrutiny.

ENVIRONMENTAL CONCERNS -The opponents could argue the environmental impact associated to cyanide and water contamination and therefore fight against the mine’s redevelopment. The resulting gravel had to be agitated with a mixture of water and cyanide; however cyanide tainted wastewater would contaminate the adjacent valley. Moreover cyanide release in the air would also entail serious health risk. Life expectancy was already lower than average, few restriction where put on how foreigners could invest, therefore enabling an unlimited scope and flexibility as to “legally” carry out their operations. Past history evidenced the failure of a dam and how it brutally contaminated the water supply and threatened the ecosystem. They argued they were going to recuperate the area but no clause was there are to assure its implementation. A down payment should’ve been done by the
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