Romania delays sale of copper reserves by 30 days

By bne IntelliNews October 16, 2013

Romania’s interim economy minister Daniel Chitoiu has postponed by 30 days the procedures, under which the state wants to sell in advance the copper production of Cupru Min over the next seven years at a minimum price of EUR 346mn.

The preliminary discussions with the prospective bidders were supposed to start on October 14, while bids were expected starting October 21. Nonetheless, a new economy minister has not been appointed by October 14 and this seems to have played a key role in the postponement also. The junior ruling party has nominated a candidate on October 15 and his appointment is expected to take place in the coming days.

Yildirim Holding Inc. (Turkey), Trafigura (The Netherlands) and Glencore (Switzerland) have submitted the necessary documents to participate in the auction organised by Romania’s government at copper mining company Cupru Min Abrud, Agerpres announced in early September.

The government wants to sell in advance the 331,889 tonnes of copper concentrate* to be delivered by the copper mining company over the next seven years. The starting price for the whole amount of copper is USD 6,900 per tonne of copper in the copper concentrate. The government wants a EUR 40mn payment in advance, payable in one instalment by December 1, 2013 [delayed to January 1 under the revised schedule]. The company would deliver 45,360 tonnes of copper concentrate for this down payment – to be adjustable according to the price from the auction of the whole amount to be delivered in the seven-year period.

* Copper concentrate is the first commercial product of the copper production line and is composed of approximately equal parts of copper, iron and sulfide. Concentrates are the raw material for all copper smelters, which by processing it obtain an impure form of metallic copper, anode or blister copper, which is later used to produce high purity refined copper.

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