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Nine investors interested in Moldomin mines

Nine investors have bought so far the tender book within the selling procedure through direct bargaining of the mines of SC Moldomin SA Moldova Noua company.

'The investors are from Canada, Switzerland and Romania and the other companies do not sound familiar as they bought the tender book via intermediaries. The bids can be submitted by July 14 and starting July 26 we begin the direct negotiations with the investor submitting the offer with the highest price. The winner will negotiate and sign the concession agreement with the National Agency of Mineral Resources,' the Bursa daily quotes Razvan Zavaleanu, managing partner of RTZ & Partners, the judicial manager of Moldomin as saying.

The Moldomin mines with the copper reserves to account for about one billion euros will be sold with their exploitation licences. The company incurs debts of nearly 50 million euros mainly towards the state. The National Tax Administration Agency (ANAF), the main creditor, has recently opened the insolvency procedure and will supervise the negotiations with the investors.

In order to make profit, the copper mines must make investments of roughly 150 million euros.

Although not all the reserves can be eked out of the mine, the investors can obtain a profit of 3-400 million euros after the revamp works, given the tendencies and the quotations on the metals' international market, the RTZ & Partners representative said.

Only the surface mines of the Moldomin assets are arousing still interest while the deepest mines are to be shut down. The exploitation licences are valid for the next 11-12 years. According to RTZ & Partners, Moldomin was declared insolvent due to the state's damaging policy that maintained after the 1989 Revolution a very low flat level of prices for the extracted copper.

The experts of the sector consider the investors are showing a great interest in the acquisition of Romania's copper mines. This spring the Australian company ElDore Mining Corporation Limited said it will take over the Baita copper mine for 15 million euros. The mine was closed down in 2010 due to the lack of funds for investments.