“It is very important that the government continue the privatization process or the process of naming private managers (at state-run companies – e.n.),” Gitenstein told reporters when asked to comment on Romania’s recent failures to privatize state enterprises.
The latest example is that of copper producer Cupru Min Abrud, whose auction was rescheduled after a series of misunderstandings between the government and the intended buyer, Canadian-based Roman Copper Corp.
Roman Copper, owned by Toronto-headquartered investment bank Bayfront Capital Partners, won an outcry auction to buy 100% in Cupru Min Abrud for EUR200.77 million.
The purchase contract was due for signing on April 6, but the Romanian authorities said the deal was cancelled because the two parties could not reach a satisfying agreement on the terms of the deal.
Economy Minister Lucian Bode said the Canadian company had refused a series of conditions imposed by the government and rescheduled the auction, despite renewed efforts from Roman Copper to settle the deal.
Cupru Min is Romania’s largest copper producer. The company’s main asset is the Rosia Poieni mining perimeter, which is estimated to hold 60% of the country’s copper reserves.
Cupru Min has a share capital of RON24.18 million and is fully owned by the Economy Ministry. The ministry has tried to sell the company twice before.