Gabriel Resources Ltd. and Gabriel Resources (Jersey) v. Romania (I)
ICSID · Investment (ICSID and treaty) · Romania · 8 Feb 2024
Why it matters
This award is a landmark victory for Romania in a high-profile investment treaty claim concerning the Roșia Montană gold mining project. The tribunal dismissed all claims and ordered the claimants to pay costs, reinforcing the principle that states may regulate in the public interest without incurring liability under investment treaties, provided they act in a non-discriminatory and proportionate manner.
Summary
Gabriel Resources Ltd. and its Jersey subsidiary initiated arbitration against Romania under the ICSID Convention, claiming that Romania breached its obligations under the Canada-Romania and UK-Romania bilateral investment treaties (BITs) by refusing to grant necessary permits for the Roșia Montană gold mining project. The claimants sought damages for alleged expropriation and unfair treatment. Romania defended on the grounds that its actions were legitimate exercises of its sovereign right to protect the environment and cultural heritage, as the project threatened significant archaeological sites and the environment. The tribunal, after considering extensive evidence and legal arguments, rejected all of the claimants' claims. It held that Romania did not expropriate the investment and that its treatment of the claimants was fair and equitable. Furthermore, the tribunal ordered the claimants to reimburse Romania's legal costs and expenses. The decision underscores the broad discretion states retain under international investment law to regulate in the public interest, particularly in areas of environmental protection and cultural preservation. The award was published on the ICSID website following the parties' agreement to declassify confidential information.
The detail
Parties: Gabriel Resources Ltd. and Gabriel Resources (Jersey) v. Romania (I)
Case number: ICSID Case No. ARB/15/31
Outcome: Romania prevailed; claimants ordered to reimburse Romania's arbitration costs.
Applicable law: Canada-Romania BIT (ratified by Law No. 356/2009) and UK-Romania BIT (ratified by Law No. 109/1995); ICSID Convention and Arbitration Rules
Issues in play: The dispute involved the interpretation of bilateral investment treaty protections (fair and equitable treatment, expropriation) against Romania's sovereign right to regulate mining activities for environmental and cultural heritage reasons.
Read the full decision at italaw ↗
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