CRA assists Romania and its counsel in their victory against $6.7 billion claim by Gabriel Resources (ICSID Case No. ARB/15/31)

Gold Grain

Gabriel Resources alleged that Romania had breached two bilateral investment treaties, including the obligation to not expropriate without compensation. The claims totaled approximately $6.7 billion including interest.

The allegations pertained to a mining project in Transylvania that would have been one of the largest gold mines in the world. The deposits in the affected area have been mined since pre-Roman times, and included extensive Roman mine works. The deposits were last mined under the communist regime in Romania. The area was declared a UNESCO world heritage site in 2021.

CRA’s work focused on the fair market value of the claimant’s rights to and investments in the Rosia Montana gold mining project in Romania. James Burrows demonstrated that the public market capitalization of Gabriel did not provide an accurate estimate of the value of project. He provided an estimate of the net present value of the project if it had proceeded in accordance with the original schedule and quantified the costs of a delay in the project.

On March 8, 2024, the arbitral tribunal issued its award in this matter. In a majority decision, the tribunal rejected the claims on the merits.

James Burrows testified at the merits hearing in September 2020. Other CRA experts included Tiago Duarte-Silva, Michael Loreth, Aaron Dolgoff. CRA worked with Romania’s legal team at Lalive and LDDP and with fifteen experts across the subjects of mining, financing, environmental and cultural matters, social license, and law.