12. Environmental Permitting - Lack of Transparency and Procedural Irregularities

NOVEMBER 2013 Authors: Roxana Pencea, Tudor Brădăţan, Ştefania Simion Editor: Mining Watch România Design: Fundaţia Extra Art Foto credit: Tudor Brădăţan, Adevărul de Seară Hunedoara English translation: Cristina Lazăr For Download: http://miningwatch.ro/reports/?lang=en

This publication is written in International English. First Edition, November 2013

www.miningwatch.ro

România fără cianură/ Cyanide Free Romania

This report is published by Mining Watch Romania, the network of non-governmental organizations (NGOs) and community-based groups working on issues concerning gold mining activities in Romania.

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This publication has been produced with the ﬁnancial assistance of the Friedrich Ebert Foundation. The contents of this report are the sole responsibility of Mining Watch Romania and can under no circumstances be regarded as reﬂecting the position of the Friedrich Ebert Foundation. Table of contents

Abbreviations list ...... 2

Introduction...... 3 1. Certej – mining history and geographical location...... 4 2. Demographic structure and employment in the community...... 6 3. Canadian company Gabriel Resources set their sights on the Certej deposit...... 7 4. Gabriel splits and European Goldfields takes over Certej project...... 9 5. European Goldfields and the gold-bearing deposits in Greece...... 11 6. European Goldfields and the gold-bearing deposits in Romania...... 12 7. Successive irregularities in the permitting procedures...... 13 8. Voia community’s refusal to accept tailings dams location in Balşa commune...... 14 9. The servile attitude of Certeju de Sus local authorities and the progress of permitting procedures...... 16 10. Eldorado Gold takes over European Goldfields...... 17 11. Deva Gold project – technical aspects...... 18 12. Environmental permitting - lack of transparency and procedural irregularities...... 19 13. The reaction of central environmental authorities and of the civil society regarding the issuance of the environmental agreement for Certej...... 21 14. Legal actions brought against the environmental agreement...... 24 15. The revision and the defective issuance of a new environmental agreement...... 25 16. Illegitimate political interferences in the issuance of the new environmental agreement...... 27 17. The accident at Certej in 1971: 89 victims and an almost forgotten precedent...... 28 18. Closure and environmental restoration plan for the Certej mine...... 29 19. From obtaining the environmental agreement to starting operations...... 30 20. Conclusions...... 31

Notes...... 34

1 Abbreviations List

ANRM - Romania’s National Agency for Mineral Resources APM - Agency for Environmental Protection APIA - Agency for Payments and Intervention in Agriculture ARPM – Regional Agency for Environmental Protection CAT - Committee of Technical Analysis CE - European Commission CIDRM - Independent Centre for the Development of Environmental Resources CIL-CIP - Carbon in Pulp (CIP) is an extraction technique for recovery of gold which has been liberated into a cyanide solution as part of the gold cyanidation process CNCAF Minvest - National Company of Copper, Gold and Iron MINVEST EIA - Environmental impact assessment EGU - European Goldfields ELD - Eldorado Gold GAL - Local Action Group HCN - Hydrogen cyanide MMP - Ministry of Environment and Forests MMSC - Ministry of Environment and Climate Change NASA - The National Aeronautics and Space Administration Natura 2000 - Natura 2000 is the centrepiece of EU nature & biodiversity policy. It is an EUwide network of nature protection areas established under the 1992 Habitats Directive. PDL - Democratic Liberal Party PNDR - National Rural Development Programme PSD - Social Democrat Party PUZ - Zonal Urban Plan ROSCI – Special protection area for the conservation of wild birds ROSPA – Special Protection Area RSR - Socialist Republic of Romania TSX - Toronto Stock Exchange USD - American Dollars

2 Introduction

The second case study of the the regional environmental authorities Mining Watch Romania report includes are very servile to the mining company, a detailed review of mining operations there are many reasons why the project developed in the area of Certeju de should not start. Many procedural Sus commune in Hunedoara county. irregularities were identified in relation It describes the path with plenty of with the issuance of the environmental irregularities of the license transfer permit and one third of the project area from the state company to the private would overlap on a Natura 2000 site. investor. The latter gained afterwards huge amounts upon selling the project The case of the Certej mining project and hence the deposit to another mining becomes better and better known to operator with ongoing projects in Greece, the public, with several commemoration Turkey, Brazil and China. The report also events organised in 2013 for the victims includes an account of the very serious of the accident in 1971, in addition to a mining accident of 1971, kept secret permanent monitoring of the authorities by the communist authorities, which with a role in permitting. The opposition made at least 89 victims. The accident at against this mining project is growing, Certej was considered the most dreadful many of the associations activating in the peacetime disaster in Romania, but this Save Rosia Montana campaign are already is not the only harm produced by mining involved in monitoring the authorities, in this area. The severe poverty and offering legal advice and informing the unemployment upon the sudden closure public on every stage achieved. of the state mine are characteristic for this commune. Authors

The name of the Deva Gold director, Mining Watch România-2013 Nicolae Stanca is mentioned several times in the report. First he was the representative of the state enterprise who transferred the mining license to a private company, then he was employed by the same company who benefited from this transfer. The company tries For more information please see the now to get approval for an open pit following reports: mining project, but several irregularities have been discovered by environmental Transylvania - undermined territory protection organisations who disputed the permit in court. Although the local Baia Mare - Preview of a mining authorities in Certeju de Sus as well as disaster

3 1. Certej – mining history and geographical location Certeju de Sus is an old mining cen- sino in Certej. tre in Hunedoara county, located in the south-eastern area of Metaliferi Moun- Once the communist regime was estab- tains. The place lies within the Golden lished ‘many countrymen who had worked Quadrilateral of Apuseni Mountains, in in mining for generations, since ancient the area of Deva, Brad, Baia de Arieş and times, were forced to become employees Zlatna towns. of the state mines, because the ore they extracted on their own could only be sold In the 19th century mining special- at the exchange office for a risible price. ists from all over Europe carefully studied In addition the state forcefully seized the complex agglomeration of chemical from peasants any land with gold bearing elements stored, in various combinations, ores. In these circumstances, “the Certej by the mountain in this area. More than local community includes almost only 100 types of minerals were discovered on poor miners who live from the hard min- an area of only one square kilometre. Two ing work”, as admitted by a state officer in of them are unique in the world of miner- 1974’. alogy: silvanite and sacarambite. After the underground mining Although mining has been practised in of the lodes in Săcărâmb, Hondol and Certej for a very long time, it was Empress Măgura, the communist authorities Maria Theresa who reformed and invigor- opened in 1982 the first open pit mine ated gold mining in Transylvania. The first in Certej, Coranda open pit, through Min- gallery, called Maria, pierced the moun- vest Deva company. Underground mining tain in 1746. Between 1748 and 1876, continued in parallel until 2004 when the during 128 years, more than 40 tonnes galleries were closed. The ore process- of gold were mined from this deposit. ing operations were stopped the same The whole mountain is now crossed by year because of their inefficiency. Minvest underground galleries. The underground finally stopped its mining activity in 2006. mining has generated the town’s de- The mine closure was not followed by en- velopment, with the first Technical Min- vironmental rehabilitation works on the ing School in south-eastern Europe be- mining perimeter, with the pollution from ing founded here. Between 1920-1930, acid rock drainage and acid mine drain- Săcărâmb, now a village within Certeju de age being still an outstanding issue. Sus commune, had 14,000-15,000 inhabitants while Deva had no more than 8,000. A journalist investigation under- There were several banks, workshops, taken by Paul Cristian Radu in 2004 de- butcher’s shops, a beer factory and a ca- scribes the atmosphere in the old mining

4 town as well as the new mining plans cense for gold ore mining. A pub sugges- of Deva Gold company: “In an office, at tively called El Dorado lies at the ground the first floor of the building raised dur- floor of the same building. This is for the ing the communist period, the company time being the only place in the Apuseni engineers make measurements for a fu- Mountains where the gold rush can be ture gold mining operation in the Certej- noticed. Particularly after alcohol runs Săcărâmb area. Similarly to other cases, down the throats of local people. The in Certej we have the same concentra- pub is for many poor people in the area tion of a few grams of gold per tonne of a long-dreamed for golden land, a place earth. The company has not moved yet a where they forget about unemployment, single gram of gold, although, according family, hardships.” to officials from the National Agency of Mineral Resources (ANRM), they hold a li-

Figure. 1 Certej proiect location, sursa: Gândul

5 2. Demographic structure and employment in the community

Certeju de Sus commune includes Small agricultural properties are specific nine villages1 totalling 3,126 inhabitants, to the villages in this commune, with the less than at the previous census of 2002. exception of the apartment block area of The commune is one of the 13 places in Certeju de Sus residence village, where the Local Action Group (GAL) Ţara Zaran- poverty and unemployment are more se- dului, with access to European funding vere - more than 16%, the micro-region’s programmes for rural development. average. As shown in the Development Plan of GAL Ţara Zarandului: ‘Tradition- Certeju de Sus is also an agricul- ally in the past most people in the com- tural ”underprivileged area” according mune used to work in the nearby mining to PNDR (National Programme for Rural operations (Brad - Gura Barza); however Development)1, and as such benefits from after mining was closed and extractive financial support through the agro-envi- operations diminished, the region’s ac- ronment programmes developed through tive population re-oriented towards other APIA (the Agency for Payments and Inter- fields of activity. Thus the available work ventions for Agriculture). About 11% of force in the region, representing about Romania’s total population lives in such 45% of the population, includes mainly mountain area places. Underprivileged workers at Brad or Deva. There are many areas in mountain regions (ZMD) occupy well-to-do households, as well as an eco- 29.93% of the country’s surface and most nomic potential for future development, of the Carpathian range area, marked by based on the financial resources held by high altitudes and steep slopes. many people living in the area.”

The commune was declared an un- According to the development vision for derprivileged mountain area on the basis Tara Zarandului, the micro-region intends both of natural conditions (altitude, cli- to valorise the natural and environmental mate, low fertility soils), and of the young resources as well as the advantages of people’s exodus and the population age- its geographic location, to develop thus a ing, the poorly equipped households and competitive economic environment and the insufficient infrastructure. About 60% hence a viable, pleasant living environ- of the commune’s population works in ment for the inhabitants of the GAL ter- agriculture. The majority of local popula- ritory. The threats seen as obstacles to tion live from this activity field both as achieving the local development strategy workers and as farmers, or to generate objectives include however “the local additional revenues. people’s indifference towards environmental protection” and “the image of a mining town”. 1 Bocşa Mare, Bocşa Mică, Certeju de Sus - residence, Hondol, Măgura-Topliţa, Nojag, Săcărâmb, Topliţa Mureşului, Vărmaga

6 While most inhabitants of Certeju the blocks in the commune centre were de Sus own lands which enable them full of “bowls”, which brought us in the to gain additional revenues from agri- national news. Certej was the commune culture, the residents of the apartment with over 1,000 parabolic antennas. Our blocks in the commune centre have a village, like NASA! The authorities had more peculiar condition. Built at the spent money unwarily on painting walls beginning of the 1970’s for the workers and parties. Miners and their families had who came from other parts of the country spent the money received as compensa- to work at the mine, the blocks are now tion salaries on clothes, scrap cars with in an advanced state of decay. Although worn tyres and to ensure “a whole life in still inhabited, many of them were not the refrigerator’s shade”, in front of the TV provided with running water in the au- set, with as many channels as possible, tumn of 2012. The precarious economic to make sure they do not miss any stupid condition of this group continues to programme’. make them dependent on employment in mining operations. A dairy note describes Therefore, although most of the com- the experience in Certej right after the mune inhabitants re-oriented towards closure of mining works of a lady living other economic activities than mining, in the commune: ‘During last Easter holi- there still exists a small but very vocal days while the state mine was still open nucleus acting as a pressure factor upon everyone had new clothes, even cars, the community to restart mining works in although they had been unemployed for Certeju de Sus. several months. In 2007 the balconies of 3. Canadian company Gabriel Resources set their sights on the Certej deposit

One of the first references of the sile Frank Timiş as Chairman and Chief Canadian company Gabriel Resources Executive Officer, proposed to sharehold- (GR) to the gold- and silver-bearing de- ers to reorganise the company, namely posits at Certej was mentioned in the by splitting it into European Goldfields press release of November 1998, as “two Ltd and Gabriel Resources Ltd. The reor- new gold-bearing areas identified on ganisation was approved and came into the property of Certej in Romania”. Ac- force as of June 2000. Gabriel transferred cording to their 1999 Annual Report 1 GR to European Goldfields their exploration purchased two new projects, Bolcana and projects at Certej, Zlatna, Bolcana and Băiţa-Crăciuneşti, adjacent to the Certej Băiţa-Crăciuneşti. project. The same report, signed by Va- 1 Annual Report of Gabriel Resources for The beginnings of Gabriel Re- 1999, issued on 17 April 2000, http://www.ase.ro/ rosia_montana/pdf/2005/ANEXA-4-%20feb-2005. sources are marked by a lack of transpar- pdf

7 Figure. 2 Certejul de Sus panorama

8 ency and charges of corruption, in utter state company for copper mining Regia contrast with the further portrays made Autonoma a Cuprului Deva. Neither the by the favourable media and the public initial agreement, nor its addenda were relations companies contracted. In a ever made public. As shown by journal- journalistic investigation published by ist Daniel Bojin, ‘they are nowhere to be the Romanian Centre for Independent found, not even at the headquarters of Journalism (CRJI), Mihai Ianăş, former the former state company (Regia Auton- ANRM president, says that the deposits oma), occupied now by the current state were presented on the Canadian stock company Minvest which replaced it.” exchange without any approval from the institution he was managing, and It is very interesting to note that the in the absence of the preliminary con- person who signed the association cession for the mining perimeters. Ioan documents between Minvest Deva and Rădulescu, former personal counsellor Gabriel Resources in 1997 on behalf of of Mihail Ianăş, has an even more deci- the Romanian state is no one else but sive position in this respect: “This busi- Nicolae Stanca, current director of Deva ness was rotten from one end to the Gold SA. The above mentioned journal- other. When they listed the project at istic investigation concludes that the the stock exchange, the investors held initial association agreement and its no single piece of deposit in Romania. It addenda as well as the establishment of was a clear scenario, aiming to achieve the joint venture in June 1997 allowed the stock exchange listing and then to the investors to enter on the back door obtain the license. (...) All this was possi- in a business with no mining license. At ble, however, because of the association that time there was no mining law in with the state in 1995”. The listing of Romania yet based on which to award deposits was accepted by the Canadian mining licenses to private entities for stock exchange based on an association resource exploitation. agreement concluded in 1995 with the 4. Gabriel splits and European Goldfields takes over Certej project

In 1999 ANRM awarded to the Since 2000, European Goldfields Ltd National Company for Copper, Gold and (80%) in association with the state com- Iron MINVEST S.A., as per art. 46 of the pany Minvest Deva (19%) form Deva Gold Mining Law 61/1998, the concession for SA. In accordance with the Mining Law2, exploitation of the deposit in the Certej Deva Gold becomes affiliated to the mining area by the „Concession license License no. 435/1999 approved by HG no. for exploitation at Certej, no. 435/1999”. 2 Mining Law 61/1998

9 51/24.01.2000. of minister Radu Ber- the employee of Frank Timiş. Actually ceanu to the demand of deputy Nicolae it was Mihail Ianăş himself who told us Popa, Deva Gold undertook the same that he heard that Regal company need- year the geological research on the ed a man in Romania so he offered them mining perimeter, followed by drilling his services’. operations. In December 2001 the concession was transferred from C.N.C.A.F. Another article, published in Aca- MINVEST S.A. Deva to Deva Gold SA, who demia Caţavencu in 2005, refers explicit- then became license holder, with Min- ly to the same moment: ‘While president vest Deva becoming an affiliate. of ANRM, Mihail Ianăş conceded to Frank Timiş thousands of square kilometres in The media archives of that period Apuseni Mountains, as well as areas for store an article of journalist Paul Cris- hydrocarbons in the north-east of the tian Radu on the Certej-European Gold- country. In compensation for the ser- fields subject: ‘Another company of Frank vices he provided to Timiş, Mihail Ianăş Timiş, International Goldfields, also was named by the latter representative leased a record area on Romania’s terri- of Regal Petroleum company in Roma- tory. This covers more than 2,500 square nia. kilometres, about ten times the area of Bucharest, between the cities of Deva, Frank Timiş held 30% of European Lugoj and Oţelul Roşu. Considering this Goldfields and was president of the area plus those controlled by Gabriel company until 2007, when he reduced Resources, the company who intends to his share and waived the presidency mine gold from Roşia Montană, and by position to concentrate on another big European Goldfields, a company activat- business in this field: African Minerals. ing in Hunedoara county, both established by Vasile Frank Timiş, we will find that this person leased 5% of Romania’s territory.

According to a media investigation, a media investigation Mihail Ianăş, director of ANRM at that time, is considered responsible for favouring and supporting Vasile Frank Timiş in obtaining the massive concessions of mining areas in Apuseni Mountains1: ‘It is of course a mere coincidence that Mihail Ianăş, the man who signed many of these concessions on behalf of the state, became, some time after the ex- piry of his mandate as director of ANRM,

10 5. European Goldfields and the gold-bearing deposits in Greece

In April 2005 European Goldfields company through its subsidiary Hellas also held 65% of the shares of Hel- Gold SA in Skouries. las Gold SA, with assets in the north of Greece. The mining concessions in this For their operation in Skouries, country covered a total area of 317 sqkm, Hellas Gold received the permit to de- including three polymetallic deposits: forest about 1,600 hectares of wood, in Olympias, Stratoni and Skouries. order to dig a two km diameter crater.

In December 2003, the Greek gov- The peninsula inhabitants are ernment took over control of the mine against the commencement of these from TVX Hellas, the former owner, who mining projects, and in April the protests declared the project closed following of people from Yerissos escalated up to local people’s protests. The state pur- occupying the local authorities’ offices. chased it for 11 million euro and sold it This was followed by retaliation, arrests the same day, for the same amount, to and intimidation by the police forces, but Hellas Gold, a company established three at the same time by an enhancement of days before, thus surrendering all exploi- opposition, with significant protests be- tation rights. Shortly afterwards 95% of ing organised in the regional capital city the company shares were acquired by the Thessaloniki. Shortly before this report Canadian company European Goldfields. was completed, Hellenic Mining Watch According to an audit the company’s announced that the courts of justice market value was estimated at that time gave the case for the ecologist activists at about 400 million euro. and the local people, obliging the local authorities to discard their incrimination In September 2005 Hellas Gold for the events of April 2013. resumed production activities at Stratoni after having obtained the environmental permits from the Greek government.

In January 2006 Hellas Gold applied for similar permits for the Olympias project, where cyanide mining operations started in 2012.

In July 2011 the Ministry of En- vironment in Greece approved the En- vironmental Impact Study for the development of the projects held by the

11 Figure. 3 Protests in Greece against the Skouries gold mining project 6. European Goldfields and the gold-bearing deposits in Romania

In August 2008 European Gold- mated the necessary investment for min- fields held in Romania an exploration ing the Certej deposit at 136.5 million license for an area of 534 sqkm in Hune- euro: “It is a small deposit, I would say doara county în judeţul Hunedoara (2.5 at the limit of profitability, particularly times the surface of Bucharest).Thus, ac- when all costs are rising”, said Nicolae cording to information on the company Stanca, director of Deva Gold for România website, European Goldfields extended Liberă. Stanca admitted even at that their old license to a 338 sqkm area west time the low efficiency of Certej project of Certej (an area adjacent to the former as compared to the optimum gold min- mines near Brad), and to a 137 sqkm area ing operations which yield between six near Deva, in the region of the gold and and eight grams per tonne. copper deposits at Muncel-Veţel.

European Goldfields, majority shareholder of Deva Gold, listed on the Toronto stock exchange (TSX:EGU), esti-

12 7. Successive irregularities in the permitting procedures In September 2006 Hunedoara mining. On the contrary, in all their offi- County Council issued the urban plan- cial information releases between 2006- ning certificate for the Certej project. 2008, listed at the Toronto stock ex- The certificate confirms the designa- change, European Goldfields specifically tion of Certej perimeter as industrial mention the support they have from the mining area. In October the same year local community. European Goldfields concluded agreements with Xstrata Queensland Limited The National Agency for Mineral and Highlands Frieda Limited for the Resources approved the feasibility study use of the technological process Albion for the mining project in September to increase project efficiency. In March 2008, although no official amendments 2007 European Goldfields submitted to had been made to the previous Feasibil- the Romanian government the Technical ity Study submitted in March 2007, as Feasibility Study for the mining project would have required the new position Certej.. Following a new drilling cam- of the tailings dams on the territory of paign completed in October 2007 the Certeju de Sus commune. ANRM also company announced a 20% increase of registered officially the reserves identi- the gold reserve for the Certej project. In fied through the drilling exploration : December 2007 European Goldfields also 41.5 million tonnes of ore with 2 grams applied for a regional urban plan (Plan of gold per tonne. Following submis- Urbanistic Zonal - PUZ). Next year they sion to the National Agency for Mineral renewed their urban planning certifi- Resources of the geological documenta- cate, including all project amendments tion with the calculation of resources since 2006. in the Certej mining perimeter, in view of their registration, and of the Feasibil- What the company’s official an- ity Study, a new Addendum was issued, nouncement to investors fails to men- no. 3/18.07.2008, to the Concession Li- tion is that Deva Gold had to abandon cense for mining no. 435/1999. Based on the plan to locate the tailings dam in this Addendum, Deva Gold S.A., in their Voia village, following following a vehe- capacity of lessee, became the license ment public debate where they faced holder, while C.N.C.A.F. MINVEST S.A. lost opposition from local people. The min- their status of affiliate to this license. ing company intended to build the two tailings dams, one of which for cyanide According to European Goldfields oxidation, on Frumoasei Valley within reports, the total investment value by Balşa commune. Prior to the public de- the end of 2009 was about 43.76 million bate held on 26 June 2008, 102 persons, American dollars. In March 2010 Deva local people and land owners in Voia, Gold obtained the environmental ap- signed a memorandum against cyanide proval for the Regional Urban Plan,

13 based on which the Local Council of London Branch and WestLB AG London Certeju de Sus approved the Local Urban Branch; this funding is provided exclu- Plan. sively for starting the necessary works for commencing gold mining operations at On 15 June 2010 European Gold- Certej, in Apuseni Mountains. The total fields1 completed the negotiations for necessary investments for starting min- a funding line of 135 million USD ob- ing operations were estimated at 190 tained from a consortium consisting million USD. On 2 August 2010 European of Caterpillar Financial SARL, ING Bank Goldfields announced they submitted the NV, Investec Bank plc, Unicredit Bank AG documentation to the competent authorities in order to obtain the environmen- 1 The price of a European Goldfields (EGU) share at Toronto Stock Exchange on 5 tal agreement. Nov. 2010 was 15.11 C$. 8. Voia community’s refusal to accept tailings dams location in Balşa commune

Deva Gold proposed initially the Regional Urban Plan associated with the arrangement of tailings dams for ore mining operation. Several residents of processing waste on Frumoasei Valley, in Voia contacted the Independent Centre Voia village. The open pit and the pro- for the Development of Environmental cessing plant would have been located Resources asking for the Centre’s involve- in Certeju de Sus, and the tailings would ment in a campaign to prevent the ap- have been disposed of in the nearby proval for building the tailings dams. Balşa commune, Voia village. The tailings Within this campaign local people from dams would have covered 871,995 m2 Voia sent a memorandum to Timişoara outside of built up areas of Voia village, Regional EPA requesting the Agency north of Certej, as per the Environmental not to issue the environmental agree- Report for the Regional Urban Plan (PUZ). ment. According to the official minutes, According to the procedures for obtain- the local residents present at the pub- ing the environmental agreement, the lic consultation in Voia expressed their Voia villagers were consulted within a utter disagreement with the location of public debate regarding the opportunity the two tailings dams in their commune. of building the tailings dams. The Replica newspaper in Hunedoara considers: “Unlike other places, where In the summer of 2008 the Re- almost nobody is present at such public gional Environmental Protection Agency consultation meetings and the projects Timişoara organised public consulta- go further without any problems, in tions on the environmental report for the Voia almost every household had a rep-

14 resentative in the meeting room.” The supported by a written memorandum attendance lists for the public debate, submitted to the Environmental Pro- prepared by Deva Gold, can prove this. tection Agency. Mrs. Rodica Lasc, living in the village, witnesses the villagers’ The public debate initially sched- refusal: “They want to turn Frumoasei uled for the autumn of 2007 was held (eng. “beautiful”) Valley, one of the most on 24 June 2008. The economic offer beautiful places in Romania, in my view, of Deva Gold for the Voia area, coming into a pond with cyanide sludge. They together with the location of the two want to bring the sludge from Certej tailings dams on the village territory, through pipes over the hill to Frumoasei included, among others, 100-150 jobs Valley. I personally cannot accept this. the water supply network for the village They may come and give us money and and building a connection road between gold, we still won’t give up our Frumoa- Voia and Certeju de Sus1. Neither the sei Valley and our good water”. new by-pass which would have short- ened the current route by 30 km, nor the jobs to be created convinced the local people to agree to the tailings dams being built in their village. The refusal was

Fig.ure 4 Balşa commune panorama, source: frmedeva.ro

15 9. The servile attitude of Certeju de Sus local authorities and the progress of permitting procedures

Following the Voia community’s time: “I also expressed this agreement refusal to accept the building of the two publicly, in the meeting we had yester- tailings dams on their commune territo- day (on Wednesday 25 June - editor’s ry, Deva Gold SA reconfigured the tech- note) on the occasion of obtaining the nical project data on the fly, proposing environmental agreement requested a new location. This new location pro- from us”. posed for building the tailing dams is in Certeju de Sus commune, on Macrişului As noted in the Hunedoara edi- Valley, and although proposed as one of tion of Adevărul newspaper1, ‘Petru the potential locations in the Environ- Cîmpian has been and remains a chief mental Report for the Regional Urban ally of Deva Gold, as he agreed to locate Plan, it had not received the maximum on the commune territory another huge score as per the criteria established. Ac- tailings dam for the tens of thousands cording to the assessment grid present- tonnes of toxic residues from gold mined by the company, building the tailings ing. The initial intention was to build dams on Măcrişului Valley would entail this dam near Voia village of the neigh- “a significant impact” in case of “dam bouring commune Balşa, but during the breaking (considering the distance and public debate the local people refused level difference to inhabited areas and the pollution of water, air, soil and the the number of persons potentially af- risk of accidents, although they were fected)”. promised more than 100 jobs”. Conse- quently on the day of the public debate As shown above, Deva Gold made organised in Voia, Deva Gold had already no amendments to the Feasibility Study ensured an alternative location for the approved by ANRM in the autumn of two tailings dams, one of which is for 2008. The mining company ensured cyanide processing waste, at Certeju this time the local authorities’ support de Sus, based on the agreement of the through the commune mayor Petru commune’s Local Council. Cîmpian. The support of Certeju de Sus Townhall for the Deva Gold project was In 2010 the Certej Local Council confirmed by the mayor’s presence at issued the urban planning certificate the public debate in Voia. While the lo- for the Certej mining project. Two years cal people in Voia refused cyanides on later, in an interview given to Adevărul their land, those in Certeju de Sus were, de Hunedoara newspaper, mayor Petru according to the mayor, “adapted to the Cîmpian admitted that the project de- issues”. He agreed to the tailings dams’ velopment steps had been made, inten- location in his commune, stating at that tionally, as secretly as possible. ‘We saw

16 what has happened in Roşia Montană. their sexual life, and the mayor said he Excessive media is very harmful”. was an example in this line. After several comments the mayor admitted that The mayor’s support to resum- his statement “was a joke” addressed to ing gold mining operations went as those who maintain that water is con- far as issuing judgements which were taminated with cyanides.” The mayor, al- a delight for media. He stated in the though apparently moderate in terms of summer of 2013 that “the fish caught in statements made, had a media interven- tailings pond have miraculous effects tion whenever required by the interests upon those who eat them, improving of Deva Gold. 10. Eldorado Gold takes over European Goldfields

In December 2011 Eldorado Gold initi- Deva Gold joint stock company. Eldorado ated the takeover of European Gold- Gold Corporation is a Canadian mining fields for the amount of 2.5 billion dol- company listed on the Vancouver stock lars1. The acquisition was completed in exchange, which holds mining perim- February 2012. Eldorado Gold became eters in Greece, Romania, Turkey, China thus the majority shareholder of the and Brazil.

Figure. 5 The map of the Eldorado Gold mining perimeters 17 11. Deva Gold project – technical aspects

The gold-bearing deposit in the Stage III - Cyanidation of the oxidised Certej perimeter has an estimated quan- concentrate and the electrolyte recovery tity of 45.5 mil. tonnes with a concentra- of gold and silver and casting in Dore al- tion of 1.8 g/t Au and 10 g/t Ag1 and is loy bullions. proposed to be mined on a 456.2 ha area. The Certej mining project, with a 16 year The scale of the Certej mining project duration and a processing capacity of 3 requires the use of 26,448 tonnes of mil. tonnes of ore/year, involves defor- sodium cyanide and 15,280 tonnes of estation, soil uncovering, an open pit, copper sulphate during the 16 years of two huge waste dumps and the use of operation. Processed toxic waste will be cyanides to obtain gold, as well as build- disposed of in the tailings dam. ing two tailings dams over 63.6 ha. Drainage water from the mine The project area is 456.2 ha, cur- waste dumps North (32.6 ha) and South rently covered by: forests 187 ha, mead- (40,.2 ha) is planned to be directed ows 30.7 ha, arable fields 5.3 ha, residen- through a drainage channel to settle- tial areas 18.7 ha. Out of this area 62.8 ha ment tanks to ensure suspended solids will be turned into Certej open pit and sedimentation. Sediments will be trans- 63.6 ha into tailings dams for cyanide ported to the tailings dam for flotation tailings, in addition to the processing tails. plant and other specific premises. The main dam of the tailings pond The ore is obtained by uncovering is designed to cover 63.6 ha and will the soil and using explosives - ANFO (a be built from rockfill; it will be built in mixture of ammonium nitrate and fuel stages, first the initial dam (starter) fol- oil). This would result in a crater with lowed by successive height increases, maximum depth 290 m, dug in 30 m with a maximum height of 169 m. steps. The ore is delivered from the open pit to the processing plant by 65 t trucks The tailings dam for flotation tails for 24 h/day, 7 days/week, 360 days/year. is an extractive waste facility classified under Risk Category A considering that a The ore processing is planned to dam failure (loss of the structural integ- be performed in several stages by the rity of the dam embankments) may pro- following methods: duce a major accident (rapid and uncon- Stage I - Flotation of ore to obtain a gold trolled loss of the content of the tailings concentrate and flotation tailings; dam for flotation tails, which may entail Stage II - Oxidation of the gold pyrite loss of human lives, environmental im- concentrate (the Albion process); pacts and material damages), in accord-

18 ance with the first indent of Annex III of tent of inorganic dissoluble/ dissociable Directive 2006/21/EC. cyanides (CNWAD) classified as very toxic substances (category H6), according to The tailings dam is also classified Directive 91/689/CE Annexes II and III. under Risk Category A based on its con-

Figure. 6 3D representation Certej project, source: Deva Gold 12. Environmental permitting - lack of transparency and procedural irregularities

In August 2010 European Gold- transboundary consultation procedure fields announced on the Toronto Stock hrough the Ministry of Environment and Exchange website the submission of Forests (MMP). documentation to the competent authorities in view of obtaining the envi- As shown on the institution’s web ronmental agreement. This new proce- page, MMP notified Hungary and Ser- dure was related to the environmental bia as countries potentially affected by impact assessment for the entire mining the project progress and sent them the project proposed for Certej. The mine, documentation2 in September 2009. In screened as having significant impact, March 2010 Hungary and Serbia sent rested under the regulating compe- back to the Romanian ministry com- tence of the Regional Environmental ments and recommendations on the Protection Agency Timişoara until this documentation received. Between Au- institution was reorganised in October gust 2010 – February 2011 DEVA GOLD 2012. Romania, in its capacity of coun- submitted to the MMP the environmen- try of origin and signatory of the Espoo tal impact assessment documentation 1 Convention a derulat undertook the on 25 February 1991, upon sanctioning it by Law 1 Romania became a signatory of the Con- 22/2001. vention on Environmental Impact Assessment 2 According to Art. 3 of the Espoo Conven- in a Transboundary Context, adopted in Espoo tion

19 and its subsequent additional informa- Romania, arguing that the Certej mining tion (hereinafter referred to as the EIA project is similar to the Roşia Montană documentation) and the ministry sent one in terms of their devastating impact it to Hungary and Serbia to be made upon the environment, legality flaws, available to the public and the national the shareholders’ network, namely the authorities. According to Art. 3 point 8 of owner companies, and as such raised the Espoo Convention, Serbia requested serious criticism from environmental Romania’s participation in a public de- protection organisations in Romania bate meeting on their country territory, over the years. while Hungary requested two public debate meetings followed by participation “The Ponta government achieved in a round of consultations between in only two months since its appoint- authorities. Therefore two days of public ment what previous governments had debates followed: only discussed. Although both prime - on 16 September 2011 in Novi Kneze- minister Victor Ponta and the Minister of vac, Serbia; Environment and Forests Rovana Plumb - on 27 and 28 September 2011 in Bu- strongly advocated at the beginning of dapest and Szeged respectively, in Hun- their mandate that the mining project gary; at Roşia Montană may not progress in the absence of environmental guaran- Romania’s final response to Ser- tees, the renegotiation of the state’s bia was notified in November 2011. The participation or the contract disclosure, consultations reunion with Hungarian pretending thus to be interested and authorities was held in Timişoara, on 8 responsible regarding the serious im- December 2011. Hungary sent their final pacts of such mining projects upon the opinion on the Certej mining project in environment and local communities, the February 2012. government requested no environmental guarantee for approving the Certej On 5 July 2012 the Regional Envi- project. ‘The Romanian State’s participa- ronmental Protection Agency Timişoara tion, similar to that of Roşia Montană, issued the environmental agreement is accepted in its current form and the no. 8 for the mining of gold-silver ores contract on which this project is based in Certej perimeter. Although this is an is again a secret one’ shows a common information of public interest, its pub- press release of associations Alburnus lishing on the institution’s website was Maior and The Independent Centre for unjustifiably delayed. Therefore the or- the Development of Environmental Re- ganisations who monitor the permitting sources. process of mining projects in Romania Moreover the environmental learned about this permit only at the agreement has no concrete provision beginning of September. They reported on any guarantees for environmental that the issuance of the environmental remediation in case of an accident. The agreement for the Certej project creates agreement only mentions that the pro- an extremely dangerous precedent for ject operator is responsible for the acci-

20 dents produced but fails to specify how tions and what mechanisms are in place the damages are to be assessed, what is to ensure that these considerations are the value of the associated compensa- complied with. 13. The reaction of central environmental authorities and of the civil society regarding the issuance of the environmental agreement for Certej

Although the Regional EPA in al of director Lambrino for not having Timişoara is subordinated to the Minis- informed the ministry and that she sent try of Environment and Climate Change a control team to check the legality of (MMSC), the minister of environment, the agreement itself. Rovana Plumb, maintained that she only learned about the issuance of this Shortly afterwards the minister’s environmental agreement at the begin- media statements became more numer- ning of September. An article published ous and culminated with her declara- in Gândul noted that “one of the current tion at the end of the meeting with counsellors of minister Plumb, Georgeta Janez Potocnik, European Commissioner Barabaş, was previously director of the for Environment. Rovana Plumb stated Environmental Protection Agency Deva, then that the environmental agreement in the very same county where the for the Certej gold mining project “is Certej project is located’. illegal and breaches European norms”. Only a few days before, "prime minister However the first public state- Victor Ponta had requested" the minis- ment of minister Rovana Plumb on this ter to take measures to ensure that en- matter was made after the national vironmental regulations are complied media took over the news sent by envi- with, maintaining that the problems are ronmental NGOs regarding the environ- generated by the former PDL governmental agreement issuance. Kamikaze ment who “would give any permit for a magazine reports on this subject: “The bribe”. Ministry is thunderstruck. Minister Ro- vana Plumb was taken by surprise by The minister of environment an- this news, which she says she learned nounced that she requested the Com- from the media. She promptly an- mission for Discipline to undertake an nounced that she requested the remov- administrative investigation regarding

21 all the persons involved in the issuance would overlap with 108.7 hectares of the of the environmental agreement, either Natura 2000 site ROSPA 0132 Metaliferi on behalf of the Ministry of Environment Mountains along Măcrişului Valley. This or of the Regional Environmental Pro- surface represents about 0.4% of the tection Agency1. However the ministry site surface. The site has 26,671 hectares has never disclosed any information on in all. The Natura 2000 site ROSPA 0132 the investigation results or any neces- Metaliferi Mountains was designated sary measures identified by that com- in 2011. The nearest Natura 2000 site is mission. ROSCI0029 Glodului, Cibului and Măzii Gorges, about 7.8 km east from the pro- During the same period ANPM (the ject. The conclusions of the report “As- National EPA) brought an application at sessment of the cumulated impact of the Court of Appeal for cancellation of the Roşia Montană and Certej project the environmental agreement issued by and the consequences of simultaneous the Regional Environmental Agency in accidents with potential transbound- Timişoara for the Certej mine. Rovana ary effects” indicate that the maximum Plumb announced the media that she values of pollutant concentrations in air had informed local authorities about and of cyanides in water are: ‘(1) Much the two directives breached by the envi- lower than the concentration and/or ronmental agreement issued - the Birds duration of exposure which could affect Directive1 and the Habitats Directive2 , as population, birds and other terrestrial well as other European regulations: “Two species and (2) Safe for the aquatic flora, European directives were breached, the which can resist to exposure to much Habitat Directive and the Birds Directive, higher concentrations and longer dura- by failing to issue the adequate assess- tions than those of the cyanide levels ment within the biodiversity strategy predicted for the river water, even in the procedure. Thirdly, the environmental case when the spill occurs in low water liabilities prior to privatisation were not flow rate conditions.” transferred within the environmental agreement, as provided by law. Fourthly, Following the issuance of the according to legislation in force, at the environmental agreement, the Inde- time when the company applied for pendent Centre for the Development the environmental agreement the Re- of Environmental Resources expressed gional Environmental Protection Agency their concern about the issuance of Timişoara was not legally entitled to un- this administrative act which, accord- dertake this procedure. The competence ing to the press release of 1 September for this rests with the National Environ- 2012had ‘many legality flaws’1. The in- mental Protection Agency”. sufficient underlying documentation for the agreement relates to the absence The environmental agreement of studies and impact assessments for for the Certej project was issued al- biodiversity, as per the Habitats Direc- though the mining project footprint tive and the Birds Directive, or the absence of any assessments of the area’s 1 Directiva Păsări 79/409/CEE 2 Directiva Habitate 92/43/CEE archaeological potential and the health

22 condition of local population with re- sessed, particularly in the given relief spect to hazardous substances. The conditions which allow for the massive insufficient analysis of the impact of accumulation of pollutants in valleys. an accident upon biodiversity, limited The report also fails to estimate the to the capacity of each species to re- long term post-closure emissions of this sist and regenerate, was also contested. toxic gas (Annex IV) from the tailings CIDRM announced in the same press dam surface, considering that the tail- release that they would bring an action ings dam with cyanides can generate in court against the issuing authority for such emissions for decades after the the cancellation of the act. end of the mining operations; - No analysis has been undertaken re- The main reasons why CIDRM garding the project impact upon the believed the environmental agreement flora and fauna species which depend had been issued illegally were: on the wood habitat to be deforested. In addition no indication is made about - Some sections of the Report on the the biodiversity impact of the flooding Environmental impact study “Mining of of the areas to be covered by the dam gold and silver ores in the Certej perim- and the tailings pond; eter” (the EIA report) were prepared by - Chapter 4.7 of the EIA Report, “The persons who were not certified to pre- socio-economic environment”, makes pare environmental impact assessments no reference to the impact on the local as per national legislation; community of the relocation of people - The CIL tailings dam proposed would directly affected by the project imple- not be made impervious and as such it mentation, nor to the post-closure evo- would not comply with Directive 80/68/ lution of the socio-economic environ- EEC on groundwater protection against ment; pollution with certain hazardous sub- - The fact that not even the environ- stances; mental agreement no. 8 of 05.07.2012 - The EIA Report fails to describe the mentions any notice from the Ministry of environmental media potentially af- Culture and Confessions issued prior to fected by the project implementation, as the environmental agreement issuance per all legal provisions applicable to the entitles us to conclude that the envi- protection of biodiversity, human settle- ronmental agreement was issued in the ments and the archaeological heritage; absence of any notice from the Ministry - Although it is estimated that the hy- of Culture, and therefore in breach of drocyanic acid (HCN) emissions from the Ordinance OG 43/2000, Art. 2 (10); the CIL tailings dam surface (page 53) - The EIA Report fails to assess the “Zero would be 2200 kg/year, while the emis- Alternative”, that is, an assessment of sions from the processing plant (page the case when the project is not imple- 49) would be 1743 kg/year, the impact mented / the proposed activity is aban- of these emissions upon air quality and doned; hence upon human health is not as- - The final decision on issuing the en-

23 vironmental agreement was not com- - The absence of the study on the ade- municated to the potentially affected quate environmental assessment of the neighbouring states, consulted within project impacts upon the Natura 2000 the transboundary procedures imple- site Metaliferi Mountains. mented;

Figure. 7 Direct action in fron of the Romanian Government, source: re-generation.ro 14. Legal actions brought against the environmental agreement

On 18 September 2012, minister Rovana ment1 , as well as for suspending its Plumb said that “we will take the nec- legal effects during the entire trial du- essary step to remedy this illegality. All ration. Moreover she said at that time legal steps will be taken” and she an- that an international convention on the nounced that the National EPA brought transboundary environmental impact an application at the Bucharest Court had been breached, , in that one of the for cancelling the environmental agree- 1 Case 45346/3/2012, Bucharest Court of Justice

24 countries consulted, namely Hungary, Bucharest Court of Justice. At the new gave a negative response but this was hearing – 1 October 2013, which was not taken into consideration. thus scheduled one year after the first hearing1, the National Environmental In September 2012 the National Envi- Protection Agency requested a new date ronmental Protection Agency, subordi- to enable a better preparation of the nated to the Ministry of Environment, case. The civil society noted the plain- brought to the Bucharest Court of Ap- tiff’s low interest for this case and their peal an application for cancelling the poor preparation for supporting the environmental agreement for the Certej arguments pleaded, and communicated mining project. The Independent Cen- that the environmental authorities ne- tre for the Development of Environ- glect the Certej case. On the occasion of mental Resources (CIDRM) and Salvaţi the next two hearings ANPM requested Bucureştiul associations registered as again a delay of the trial for this case, interested parties in the litigation. At and finally with their abandonment of the first court hearing the Bucharest the claim for cancellation of the envi- Court of Appeal declined its competence ronmental agreement, on 27 November for solving this case in the favour of the 2013. 15. The revision and the defective issuance of a new environmental agreement

Hunedoara EPA issued on 9 Octo- authority, with a five day deadline for ber 2013 a decision to revise the envi- submitting comments. ronmental agreement for the cyanide mining project at Certej and requested In the very short interval allowed for the partial resuming of the environ- stakeholders to submit comments and mental impact assessment for the pro- suggestions, the Independent Cen- ject “Mining of gold and silver ores in tre for Development of Environmental the Certej perimeter”. Deva Gold was Resources, Salvaţi Bucureştiul, Efectul thus asked to submit an assessment Fluture and Transilvania Verde associa- study of the potential impacts of the tions, as well as a large number of citi- mining project upon protected areas of zens of the area potentially affected by community interest (Natura 2000 sites). the Certej mining project, formulated On the date when this decision was a contestation and submitted it to the published on the institution’s website, Deva EPA. The objections referred main- Deva Gold had already submitted the ly to the fact that an environmental documentation, to the environmental agreement may be revised to the extent

25 that the approved project is subject to communicated the deadline for sub- modifications: “In this case the revision mitting contestations by the interested was not required by changes in the pro- public, 25 November; based on the re- ject for which the environmental agree- view of the comments and suggestions ment was issued, but instead by an ap- received, the CAT members would decide proach undertaken in order to complete upon issuing or rejecting the environ- the legal documentation. Such approach mental agreement. However, although aims rather to conceal and to complete the mining of gold-silver ores in the the previous unsatisfactory documenta- Certej perimeter is classified as a “major tion prepared, based on which no envi- risk” operation, Hunedoara EPA issued a ronmental agreement should have been new revised environmental agreement, issued. The project operator is obliged1 only one day after receiving the contes- to prepare the impact assessment study tation submitted by the custodian of on the Natura 2000 site ROSPA 0132 the Natural Reserve Măgurile Băiţei, the Metaliferi Mountains - according to the Club Alpin Român Deva Association. law, “Any plan or project not required for the management of the natural Consequently the Environmental Pro- protected area of community interest tection Agency Hunedoara issued on 27 but likely to have a significant effect November 2013 a new environmental thereon, either individually or in combi- agreement for the Certej mining project. nation with other plans or projects, shall Considering that the new act illegally be subject to appropriate assessment replaces and revises the environmental of its potential impacts on the natural agreement issued by the Regional Envi- protected area of community interest, ronmental Protection Agency Timişoara in view of the site’s conservation objec- in 2012, the Independent Centre for the tives.” Nevertheless, the operator of the Development of Environmental Re- Certej mining project has not prepared sources decided to dispute the new act any such appropriate assessment study in administrative due process. At the in view of obtaining the environmental same time with the decision to issue a agreement no. 8/05.07.2012. new environmental agreement, MMSC abandoned the claim for cancellation of On 12 November 2013 Hunedoara the environmental agreement issued in EPA announced the decision of the Tech- 2012, a process under trial at the Bucha- nical Assessment Committee to issue a rest Court. new environmental agreement based on the completion of the studies on secu- rity and on the impact upon the Natura 2000 site Metaliferi Mountains. The announcement on the issuance of the revised environmental agreement, also

1 Emergency Ordinance no.57 of 20 June 2007

26 16. Illegitimate political interferences in the issuance of the new environmental agreement

On the date when the environ- organised on 11 November 2013 at mental agreement of 2012 was issued1, the Cultural House in Deva, she stated the technical counsellor of the minister however that the whole documenta- of environment was Georgeta Barabaş, tion for issuing the agreement was in member of PSD Hunedoara, previ- Timişoara, and Hunedoara EPA was not ously executive director of Hunedoara aware of the additional information re- EPA until 25 June 2012. Mrs. Barabaş quested within the Technical Approval had been director of the institution Commission meetings. Mrs. Barabaş’ in Hunedoara since April 1997, with a statements are confusing in this case three year pause. Although she was too, increasing the suspicions regard- aware of the environmental impact ing the honesty of her public affirma- assessment procedure and had partici- tions. pated in many of the meetings where the Certej mining project had been Actually the perfect synchronisa- discussed, when asked by the reporter tion between the issuance date of the from Gândul whether she had informed new environmental agreement and the the minister of environment on the date of MMSC’s abandonment of the environmental agreement project, claim in court cannot be a mere coin- Barabaş explained: “I was not the min- cidence. The environmental authori- ister’s counsellor at that time, to inform ties have certainly communicated with her”. The statement of Mrs. Barabaş is respect to the issuance and re-issuance suspect, to say the least, in the context of the environmental agreement, par- when she was aware of these issues, ticularly in the context of a more in- according to Gabriela Lambrino, execu- tense media focus on this subject. tive director of the Regional Environ- mental Protection Agency Timişoara, The public interest was also and she was counsellor of Rovana excited by the fact that the defender Plumb at the time when the environ- selected by Deva Gold SA in the above mental agreement was issued. mentioned case is the attorney-at-law office Nestor Nestor Diculescu Kingston One year later the same Georgeta Petersen. The pleading attorney-at-law Barabaş returns as executive director of for the case was no one else but Mrs. the EPA, and as such she signs the deci- Ana Diculescu-Şova, the mother of Dan sion to issue the revised environmen- Şova, deputy minister for large projects. tal agreement. Within a public debate The latter, as member of the government, participated in the preparation 1 July 5th, 2013

27 of the participated in the preparation of mining project proposed by Deva Gold the ‘National Plan for Strategic Invest- SA. Other Mrs. Şova were Roşia Montană ments and Creation of Employment' Gold Corporation and the American com- published in July 2013. The projects pany Bechtel. listed in this plan include the Certej

Figure. 8 The law frm contracted by Deva Gold , source: Portal Just 17. The accident at Certej in 1971: 89 victims and an almost forgotten precedent

On 30 October 1971 a mining ac- ing technical research and investiga- cident occurred which resulted in the tions to identify the accident causes, death of 89 persons in Certeju de Sus the case was closed with no result. in Hunedoara county. The dam failure Bad luck remains for eternity the only and the slide of the mine waste heap one guilty for the tragedy which oc- from the tailings dam of the Certej curred 40 years ago in Certej, although mining operation produced the big- 89 persons were swallowed by tailings gest peacetime tragedy of the 1970s. and died. The scale of the disaster was con- cealed at that time in order to avoid “There were seven degrees below zero declaring it a national tragedy. Follow- and mist that morning in Certej.” Ioan

28 Chirlă is horrified even now remember- documentary by film director George ing that all the bodies recovered from Adamescu only 42 years later. Miliţia the tailings by army soldiers were na- Spirituală association also made public ked. “The cyanide used in the extraction for the first time in 2013 a Report of the process was present in the tailings and General Prosecutor of RSR, (the Socialist it burnt all their clothes. All the bodies Republic of Romania), Augustin Alexa, removed from the tailings were naked, on the Certej disaster. ‘The dam failure with traces of bumps and burns”, re- at the tailings pond was the result of counts Ioan Chirlă for Adevărul de Seară the coinciding action of unpredictable – Hunedoara. The accident had little factors, following some sub-aquatic coverage in the Romanian media, and geo-mechanical and hydro-physical the details of the tragedy are still unjus- phenomena, which are not fully under- tifiably neglected nowadays by authori- stood yet by science and technics. Con- ties. At that time the communist party’s sequently, as the dam failure at the tail- censorship imposed a total silence on ings pond was the result of such factors, this subject, but the present day author- no individual can be found guilty of any ities’ lack of interest in the Certej acci- criminal liability”, shows the document dent remains inexplicable. of 4 December 1972, originating from the Archive of the Central Committee of Some witnessing from accident the Romanian Communist Party. survivors were registered in a short 18. Closure and environmental restoration plan for the Certej mine

Governmental Decision The contract ‘Works for the clo- 1034/2010, allocated the amount of sure, making safe and environmental 100,000 thousand lei from the envi- remediation of the mining operation ronmental fund, within the approved Certej – Valea Mireşului and Valea budget, as non-reimbursable funding Mealu tailings dams, Hunedoara county’ for the closure of certain mining opera- was won by the bidder Eco Invest SRL/ tions. This amount is awarded to the Hidroconstrucţia/TPSUT. The Ministry of Ministry of Economy, Trade and Busi- Economy, Trade and Business Environ- ness Environment in stages, starting ment announced shortly afterwards the 2010. However the bid for awarding the cancellation of four bids in the field of contract was organised only one year mine closure and remediation works, later. including that for the Certej tailings dam. The ministry’s press release says

29 that the decision was based on an audit Mireşului tailings dam, stability works, which showed that “the bids were or- environmental remediation works at the ganised in August 2011, breaching legal emergency pond on Valea Mealului and provisions, to enable only certain com- sealing and environmental remediation panies to win.” However the company works for the latter. The plan for mine Eco Invest SRL, winner of the award closure and environmental remediation contract of November 2011, disputed of the area could create employment the ministry’s decision and the National and should include a professional reori- Competition Council admitted this re- entation component. quest in September 2012 Therefore the closure programme, totalling 12,437,197 lei, net of VAT, would include a treat- ment system for water in the Valea

19. From obtaining the environmental agreement to starting operations

The revised environmental agree- to expropriate any private asset located ment obtained by Deva Gold for the in that same perimeter, to destroy any Certej mining operation does not enti- historical monuments and archaeologi- tle them to actually start operations. A cal sites which get in their way in order series of other permits and administra- to develop mining operations, as well as tive documents to be issued by local to obtain again in no more than 60 days and central authorities should precede any agreement or approval cancelled by the final permit for building the mining a court. facility. The Certej mining project would The recent draft law for amending involve deforestation of no less than the Mining Law 85/2003, draft law Pl-x 187 ha of woods, and such approval, as 573/2013, rejected by the Parliament per the current legislation, can be is- on 10.12.2013, would have facilitated sued only by a Governmental Decision. in a totally unconstitutional and abu- A preliminary specific environmental sive manner the awarding of necessary agreement is required, strictly in rela- permits and agreements for mining tion with the environmental impact companies, including Deva Gold. The generated by the loss of such a large mining law thus amended would have forest area. enabled mining companies to obtain concession of any asset in the public Deva Gold does not currently hold domain within their mining perimeter, an ownership right upon all the private

30 land plots where it proposes to develop logical Register includes 19 sites in the its mining activities, and this reason Certejul de Sus locality, archaeological would be sufficient to prevent them sites, settlements and galleries dating from obtaining the construction permit back to the Neolithic, the Bronze Age, as per the current legislation. the Roman Age up to contemporary times. In the absence of such archaeo- The company has not undertaken logical survey, those areas cannot be so far, through certified institutions, subject to the archaeological discharge any preventive archaeological survey and as such the company cannot obtain of those areas in the mining perimeter a construction permit. susceptible of belonging to the national cultural heritage. The National Archaeo- 20. Conclusions

ANRM acknowledges the gold low 5 million dollars per year. The initial quantity of the Certej deposit at 83 investment would be between 50-55 tonnes while the company estimates in million dollars, so they obtained by the impact study that they will extract selling it 500 times more than they had 81 tonnes of gold. There would also be actually spent. some additional 450 tonnes of silver. As of 13 December 2013 only the gold at A review of the way how this Certej was worth more than three billion amount was acquired shows that Ga- dollars, while the silver was worth ten briel Resources initially, later on through times less, If we deduct from the cumu- European Goldfields, a company that lated value of the two metals the cost held no assets upon its establishment, of developing the project, of almost 200 managed to fund its activity and to million dollars, and the cost for acquir- produce a huge profit in a little more ing the mining project, of 2.5 billion than 10 years. The company’s success dollars, there would still remain a dif- was mainly a result of their ability to ference of over 700 million dollars. What sign a non-transparent principle agree- is shocking however is the profit regis- ment with the Romanian state, through tered upon the sale of the mining pro- a former state company. Based on this ject by European Goldfields to Eldorado agreement the company was listed at Gold. Since its establishment in 2000 the stock exchange, claiming to hold until 2009 when they published their rights upon a significant gold deposit. last report, the company spent 43.76 We can notice in this case the relaxed million dollars. The available sources do attitude of the Toronto stock exchange not indicate the spendings of European related to the listing of a company Goldfields in 2010 and 2011, until they which at that time held no solid legal sold the project, but we could consider, documents (no license) to prove their for the sake of exercise, an average be- assets. In the first year since the list-

31 ing their share price raised from 0.38 to closure costs in case of the company’s 4.5 Canadian dollars. The amounts thus bankruptcy rest with the Romanian state gained enabled the company to contin- in exchange of their 19.7 % participa- ue operation and to obtain the transfer tion. According to the environmental of the concession and the license for agreement issued, the company was not exploitation from MINVEST to the Roma- obliged to submit any environmental nian company held by European Gold- guarantee, and this is one of the reasons fields. The first association agreements why the agreement is disputed. The between the Romanian state company agreement only mentions that the pro- and the foreign investor were signed by ject operator is responsible for the acci- Nicolae Stanca, the current director of dents produced but fails to specify how the company created from this associa- the damages are to be assessed, what is tion – Deva Gold SA. The agreements the value of the associated compensa- were not the result of any bid and there tions and what mechanisms are in place were no previous announcements made to ensure that these considerations are regarding the state company’s avail- complied with. The director of Deva Gold ability to associate with private compa- himself admits that the mining project nies. The enormous amount obtained by itself has a very low profitability be- European Goldfields upon selling their cause of the low gold concentration of assets to Eldorado Gold is not justified the ore, which makes the scenario of the by any kind of added value except for company bankruptcy, as a result of ex- the transfer of the license and the con- ternal factors, at least plausible. cession. Actually the deposit held by the Romanian state was sold by a private The Romanian state is exposed company to another private company, through this project to a huge as well as with no revenue for the national budget. useless risk, the amounts to be paid in The most spectacular transaction has case of an accident do not justify un- already been completed, the remaining dertaking the complete risk of damages. potential revenues for the state would It is exactly because of this complete represent taxes and potential benefits undertaking of environmental risks that calculated as percentages of the differ- we can consider mining to be still sub- ence between the gold selling price and sidised by the state, in any case it does production costs, within the limits of not generate any benefits for citizens. the 19.7 % state’s participation. The Romanian state would be in a much profitable position in the case of Certej Considering what will happen if instead of such hidden subsidies they after the start of mining operations, we would access funds for the environmen- will notice that it is still the Romanian tal remediation of the area, thus creat- state who will pay most. The potential ing real employment and ensuring the benefits do not justify the unfair shar- possibility of a sustainable development ing of risks. Although Eldorado Gold model for the community. The extremely would be entitled to 80% of the profit, disadvantageous development model the costs to be covered in case of an chosen by the Romanian state and the environmental accident or the mine suspect past connections of the Certej

32 cyanide mining project operator also of mining companies, the civil society raise many suspicions of corruption and managed to intervene before the project illegalities. start. The devastating accident of 1971 occurred exactly because the authorities The company can have no con- at that time had no capacity to ensure fidence at present that they will ever an efficient control, there were no com- develop any mining project, and the lack plex permitting procedures, and all ac- of transparency in the past resulted in tions undertaken was totally non-trans- the staged progress of the mining pro- parent. These realities started to change ject permitting. While the license and gradually, although the lack of transpar- concession transfer have not raised the ency renders the activity of ANRM and of interest of investigation authorities yet, the state authorities before 1989 just as the environmental agreement is disput- opaque nowadays. ed in court by the civil society. Although the state institutions serves the interest

33 Notes

1. Academia Cațavencu, Aurul, petrolul și ardelenii Tender, Talpeș și Timiș, 2005, http://www.hotnews.ro/stiri-arhiva- 1236814-aurul-petrolul-ardelenii-tender-talpes-timis.htm 2. Academia de Științe Economice, Analiza Proiectului Roșia Montană, 2005, http://www.ase.ro/rosia_montana/pdf/2005/ ANEXA-4-%20feb-2005.pdf 3. Adamescu, George, Certej '71, 2013, http://www.youtube.com/watch?v=1bIRYg_dEKo 4. Adevărul, Viaţa în Certeju, cianuri sau foame, 2012 http://adevarul.ro/locale/hunedoara/viata-certeju--cianuri-foame-1_50aee1187c42d5a663a16da1/index.html# 5. Agenţia de Plăţi şi Intervenţie pentru Agricultură, Lista unităților administrativ-teritoriale din PNDR, Anexa 4A – Zone defavorizate, http://www.apia.org.ro/buget/zone_defavorizate.pdf 6. Agenția pentru Protecția Mediului Hunedoara, Anunț public, 2013, http://apmhd.anpm.ro/fles/APM%20Hunedoara/ AnuntSiteDEVAGOLDREVIZUIREEXPLOATARE1.pdf 7. Agenția pentru Protecția Mediului Hunedoara, Anunț public emitere a acordului de mediu, 2013, http://apmhd.anpm.ro/ fles/APM%20Hunedoara/AnuntAPMDEVAGOLDDeciziefnala.pdf 8. Agenția pentru Protecția Mediului Hunedoara, Decizie de emitere a acordului de mediu, 2013, http://apmhd.anpm.ro/ fles/APM%20Hunedoara/DeciziefnalaDEVAGOLD1.pdf 9. Agenția Regională pentru Protecția Mediului Timișoara, Anunț dezbatere publică, 2008, http://www.arpmv5.ro/pages/ doc/convocator%20dezbatere%20publica%20DEVA%20GOLD.PDF 10. Agenția pentru Protecția Mediului Timișoara, Decizie, 2008, http://www.arpmv5.ro/pages/doc/Decizie%20dupa%20dezbatere.pdf 11. Agerpres, Rovana Plumb: Acordul de mediu acordat exploatării de aur de la Certej este total ilegal, 2012, http://www. agerpres.ro/media/index.php/economic/item/147087-Rovana-Plumb-Acordul-de-mediu-acordat-exploatarii-de-aur-de-la- Certej-este-total-ilegal.html 12. Alianța pentru o Românie Curată, Militia Sipirituala: Raportul dezastrului de la Certej – 1971, 2013, http://www.roma- niacurata.ro/militia-sipirituala-raportul-dezastrului-de-la-certej-1971-4225.htm 13. Bela Abraham, Marin Şenilă, Erika-Andrea Levei, Cecilia Roman, Ana-Maria Incze, Emil Cordoş, Surface water pollution with heavy metals in Certej mining basin, 2005, http://tucson.ars.ag.gov/isco/isco15/pdf/Abraham%20B_Surface%20 water%20pollution.pdf 14. Centrul Român pentru Jurnalism de Investigație, Paul Cristian Radu, Stăpânii aurului, 2004, https://www.crji.org/articole. php?id=4025&hi=stapanii%20aurului 15. Centrul Român pentru Jurnalism de Investigație, Reţeta secretă a afacerii Roşia Montană, Daniel Bojin, 2011, https:// www.crji.org/articole.php?id=4190 Centrul Român pentru Jurnalism de Investigație, Paul Cristian Radu, România lui Vasile Frank Timiș, 2004, https://www.crji. org/articole.php?id=4054 Consiliul Național de Soluționare a Contestațiilor, Decizie, 2012, http://www.cnsc.ro/d/2012/decizie_3272.pdf 16. Deva Gold SA, Wildlife Management, Studiu de Evaluare Adecvată pentru proiectul „Exploatarea minereurilor auro- argentifere din perimetrul Certej”, 2010, http://www.mmediu.ro/beta/wp-content/uploads/2013/10/2013-10-29_Studiu_ Evaluare_Adecvata_Proiect_Certej.pdf 17. Direcția pentru Agricultură, Zonele defavorizate din România – caracteristici generale, http://www.dadr-mures.ro/pdf/ actual/anexa11.pdf 18. Eldorado Gold, Informații despre investitor - România, 2013 http://www.eldoradogold.com/i/pdf/FactSheetRomanian- Aug30-2013.pdf

34 19. FxEmpire, Gold Prices December 13, 2013, Technical Analysis, 2013, http://www.fxempire.com/technical/technical- analysis-reports/gold-prices-december-13-2013-technical-analysis/ 20. GAL Țara Zarandului, Planul de Dezvoltare Locală Al Grupului de Acţiune Locală „Ţara Zarandului”, http://tara-zarandului.ro/wp-content/uploads/2013/07/Plan-de-dezvoltare-GAL-TARA-ZARANDULUI- v.2.0.pdf 21. Gazeta de Maramureș, Blestemul de un milion de Euro, 2012, http://www.gazetademaramures.ro/blestemul-de-un- milion-de-euro-12540 22. Gândul, Lorena Voiculescu, Minele de la Certej. De ce a afat Rovana Plumb abia după două luni despre un aviz de mediu acordat pentru exploatarea cu cianuri, 2012, http://www.gandul.info/fnanciar/minele-de-la-certej-de-ce-a-afat- rovana-plumb-abia-dupa-doua-luni-despre-un-aviz-de-mediu-acordat-pentru-exploatarea-cu-cianuri-10091272 23. 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