Switzerland-headquartered Glencore Xstrata, which has also lodged pre-qualification papers for the future auction, was rejected due to a series of “omissions” in the filed documents, Economy Minister Varujan Vosganian said Friday.
“The EUR1.2 million bank guarantee note was the deal breaker [during the pre-qualification process]. For Glencore, there were a series of omissions in their bank guarantee note,” said Vosganian.
He said the next stages of the sale procedure will start shortly and the process should be completed by mid-October.
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.