The negotiations between the ministry and the two companies that passed the pre-qualification process, namely Turkish chrome producer Yildirim Holding Inc. and Dutch commodities trader Trafigura, were supposed to start this week.
However, the ministry’s privatization and negotiation committees have decided to defer the negotiations by 30 days “to examine the auction strategy and to allow for a potential reconfirmation of the sale mandate by the future minister of economy,” the ministry said.
Economy Minister Varujan Vosganian resigned his position last week. He was replaced by Finance Minister Daniel Chitoiu, who serves in an interim capacity until a new minister is appointed.
Cupru Min, Romania’s largest copper producer, wants to sell up to 331,890 tons of copper concentrate at a starting price of $6,900 a ton of copper from the available copper concentrate.
The sale agreement will be signed for a period of seven years. Cupru Min is requesting a down payment of EUR40 million, payable in one installment no later than December 1, 2013.
Cupru Min’s main asset is the Rosia Poieni mining perimeter, which is estimated to hold 60% of the country’s copper reserves.
Romania has been trying to privatize the company for several years, but with no results. In 2012, Canadian-based Roman Copper Corp. won an auction to purchase Cupru Min, but the government cancelled the auction, citing contractual disagreements.
In February this year, the Economy Ministry was authorized to search for associates that could finance part of the company’s operations.