CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Roman Copper Corp. is suing the Romanian government after the country backed out of a deal to sell its largest state-owned copper mine, Cupru Min Abrud.
Canada-based Roman Copper Corp bid 200 million euros for the mine at an auction in March, beating out three competitors including Australian miner OZ Minerals. The mine is the largest copper operation in Romania with estimated reserves of 900,000 tonnes of copper, or around 60% of the country’s copper reserves. Roman Copper is backed by Valhalla Resources Ltd. and Bayfront Capital Partners.
According to an April 7 Reuters story, the deal got hung up over three conditions: whether privatization contracts should made public; that payment had to be settled within 30 days; and that the company had to put up 32 million euros as collateral for future spending on environmental safeguards.
“Roman Copper Corp. is acting to protect its rights and the rights of its shareholders according to both local and international law. We have acted in good faith, we have respected the tender conditions, we have followed the rules set out by OPSPI, and we won the tender,” Roman Copper Corp. President Joel Hayes said in a statement.
The Romanian government has also run afoul of Gabriel Resources which is trying to develop the massive Rosia Montana gold-silver deposit. As MINING.com reported last week, it looked as if Europe’s biggest mining project may be approaching the finish line after a dozen years of opposition and delays, but then Romania’s prime minister designate pulled the rug from under its promoter.
PM Victor Ponta said a ‘transparent’ review of Rosia Montana will be sought “so that the permitting decisions take into account the national interest, environmental protection and European legislation.”
Gabriel Resources (TSX:GBU), which owns 80% of the Rosia Montana project, was hammered on the news, dropping 13.6% to $2.03 by the close last Thursday. Its losses for the year to date now total a whopping 67%.
