How would the mine affect the economy?
The Roşia Montană mine has the potential to add more than $24 billion USD to Romania’s GDP over a three year construction period and sixteen year mine life. Perhaps more important still, the mine would be a standard bearer for a revitalised mining sector, highlighting that Romania is “open for business”, encouraging local and other overseas investors to seek opportunities in Romania and boosting growth in one of the poorest member states of the European Union.
Romania would receive 78 percent of the direct benefits from the mine, according to a draft agreement in 2013. There would be no trade-off of economic growth against the highest environmental and safety standards. No compromise would be required, a modern mining project depends on its environmental compliance to continue to be able to operate, in order to deliver wealth and jobs. That wealth and job creation enables investment and resource to be applied to such high standards of environmental protection.
Romania would also benefit from:
- income taxes
- corporation taxes
- jobs created
- 2,300 jobs would be created directly during construction with 880 direct jobs when the mine is fully operational.
- Thousands more jobs would be created indirectly for suppliers and businesses.
- Seventy-eight percent of the benefits would stay in Romania.
- Over $24 billion USD is forecast to be generated for the Romanian economy.
- Roşia Montană has already seen investment of approximately $550 million USD.
Roşia Montană is in an area with low incomes and unemployment estimated at 80 percent, following the recent activity reduction at RMGC.
Mining operations would create some 7,000 direct and indirect jobs during its construction phase and some 3,600 direct and indirect jobs during its operational phase. Most of these jobs would be in the immediate vicinity of the mine, greatly alleviating Roşia Montană’s current state of poverty. The mine would also have a large impact on the Romanian economy: overall, it is forecast to generate over $24 billion USD for the Romanian economy at an assumed gold price of $1200/ounce.
The Roşia Montană mine would have an impact on the people in the local area and the mine will have an added impact further afield, benefitting, among others:
- local businesses
- technical suppliers to mining sector
- construction workers
- local government workers
- transportation workers
- restaurants and hotels
- manufacturing industry
The Roşia Montană gold mine will boost the local and national economy by creating jobs, increasing incomes and raising significant revenue for the country. Nearly eight out of ten dollars generated directly will stay in Romania with many more dollars generated indirectly also remaining in the country.
For more information, check out this fact sheet about the Roşia Montană mine’s economic impact.
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