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New bid deadline for Cuprumin is set for Sept. 1

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The new deadline for investors submitting bids for copper mining company Cuprumin is September 1 and the whole procedure could be completed by the end of October, Economy Minister Vosganian told a press conference on Thursday.

He said that only one company - Trafigura - had submitted a bid for Cuprumin by the initial deadline of July 19, but the documentation was anyway incomplete, the experts' report showed. Another two potential bidders, one of which is Glencore, asked for a deadline extension.

Vosganian admitted that given the importance of Cuprumin, which exploits the bulk of Romania's copper reserves, the investor qualification criteria are pretty severe - a bank guarantee letter of 1.2 million euros, a creditworthiness letter for 40 million euros, and a minimum required price of $ 6,900 / ton of copper. The Economy Minister added that after consultations with the Prime Minister, a new bidding deadline was approved.

The strategy of the Ministry of Economy for Cuprumin aims at attracting investors under a commercial contract with the advance payment for copper concentrate resulted from exploitation. Therefore, the company has invited bids for the sale of up to 331,890 tonnes of copper concentrate, seeking to sign a seven-year contract with a buyer willing to make a down payment of 40 million euros.

Cuprumin needs massive environmental and retooling investments in order to become viable.

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