Yukon-based Gabriel Resources is at the centre of a controversy over plans to develop Europe's biggest open-pit gold mine in Romania, which includes leveling four mountains and creating a lake of cyanide, which is used to extract gold and silver from the ore.
But The Associated Press reports a Romanian parliamentary commission will reject legislation that would have cleared the way for the Rosia Montana project.
The development has been subject to years of protest and debate over whether its economic benefits outweigh the potential environmental damage, AP said.
The last few weeks have featured widespread protests in Romanian cities, prompting Prime Minister Victor Ponta to pull back from plans to get the project approved.
"The ruling coalition intends to reject the project," Ponta said Monday, but added the government supports foreign investment inRead More »from Canadian mining firms giving country a black eye abroad, report finds