Romania seeks investor for copper mine Cupru Min.

By bne IntelliNews May 23, 2013

Romania will pick a partner for the consolidation of the nation's largest copper mine Cupru Min prior to its privatisation, economy minister Varujan Vosganian announced.

The drop in copper prices on the foreign markets over the past year [13% y/y as of April] is not in favour of a privatisation, he explained. The company operates the Rosia Poieni copper mine. The final strategy on the sale will be drafted before June 17 by a consultant but in principle the private partner will have to come up with the financing for the necessary investments and will receive in exchange copper ore from the mines’ production until its financial contribution is paid back.

The strategy will be endorsed by the company on June 18. The issue of environmental permits will be fully tackled by the strategy.

There are seven prospective bidders, Vosganian added – but they expressed commitment to take over the majority stake in the company rather than to participate into such a strategy as announced by the ministry.

Romania failed in its attempt to sell 100% in Cupru Min last year as the bidder, Canada's Roman Copper Corp, failed to pay the EUR 200mn price promised.

The company is economically viable and has an operating licence for a copper mine that holds estimated reserves of 1mn tonnes of copper.

Nonetheless, the state does not have the resources to finance the EUR 100mn necessary investments in production and environment-related programmes. The output can increase to 18,000 tonnes of copper annually once adequate investments are implemented.

 

Related Articles

Owner of Romania’s Dedeman reportedly close to signing largest ever deal in the Romanian office segment

Dragos Paval, owner of Romania’s biggest DIY retailer Dedeman, is reportedly close to signing an agreement with Africa Israel Investments for the acquisition of an office building project in ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Shares of Digi Communications drop as CEO of Romanian subsidiary is investigated for corruption

Shares in Digi Communications closed the day 4.1% down at RON39.5 (€0.86) per share on the Bucharest Stock Exchange on May 17, the day after they were floated. The company was hit by a ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss