Foreign investors vying over Romania's copper reserves

Two copper mining companies, Cuprumin Abrud and Moldomin Moldova Nouă, are put up for sale. The price of a tonne of copper has boomed over the last two years from 2,700 dollars to 10,000 dollars. The value of Romania's copper reserves is estimated at 5-10 billion euros at the current prices.

The price of copper has recently reached a staggering 10,000 dollars/tonne (6,500 euros per tonne) following strong demand from China, which compares with 2,000 dollars/tonne between 1980 and 2004.

Cuprumin Abrud has recently been put up for privatisation by the state through public tender after last year the company saw its turnover up five times, to 27 million euros and made an around 4 million-euro profit against 4 million-euro losses in the previous year. Cuprumin sold 5,000 tonnes of copper last year.

Moldomin, another copper mining facility is currently under bankruptcy proceedings after the company that used own it, Cuprom Baia Mare, went bankrupt.

Moldomin was put up for sale by the company's court-appointed administrator, RTZ & Partners. Three interested parties have already bought the tender documents, with direct negotiations to start on May 26th of 2011.

Letters of intent have been submitted for Cuprumin, which is held by the state via the Economy Ministry, by investors in Switzerland, Austria, Canada, Australia and Russia, with the letters to also be opened in May 2011.