DRAFT BILL:  The Romanian State, forced to renegotiate its minority stakes in the mineral resources sector

• PSD senator Sorin Bota: "We propose that the exploitation of mineral resources and the management of mining waste be performed exclusively by public-private partnerships"

The Romanian government may be required by law to renegotiate its minority stakes it holds in various companies in the companies operating in the mineral resources sector to reach a minimum holding of 50%.

The senators of the PSD have filed a draft bill for this purpose, which will be debated during this legislative session, arguing that the state should be making higher gains from the existing natural resources.

PSD senator Sorin Bota, the initiator of the draft bill, said: "We have submitted a draft bill with the Senate by which we are proposing that within one year from its passing, the state would be required to begin negotiations with the majority shareholders or to buy shares in the companies which exploit natural resources in which it is a minority shareholder. For instance in Petrom, based on negotiations with the majority shareholder, the Romanian state may give up on its current stake in the commercial division and increase its stake in the extraction company up to 50%".

The draft bill of the social democrats will have a significant impact on future businesses. PSD senators are proposing that, in the future, when it comes to exploiting mineral resources or to managing mining waste, these activities be performed by private companies only in association with the state.

Sorin Bota explained: "Another provision of the draft bill concerns the future commercial endeavors in the field of the exploitation of mineral resources and of mining waste. We are proposing that in the future, these activities which are important for the economy only be performed by private-public partnerships, in which the state would hold at least 50%. This provision would also apply, and why wouldn"t it, if the project of Roşia Montană, in which the state only holds 19%, were to begin".

The PSD senator considers that the proposal has great odds of passing. Cristian Pârvan, the secretary general of the Association of Romanian Business People (AOAR), claims

that a major hurdle for increasing the holding of the state would be the lack of money. "How are you going to negotiate buying additional shares, when you"re running a deficit?", Pârvan asked rhetorically.

The representative of the AOAR also believes that this draft bill is "belated" and that it violates the EU regulations concerning the circulation of capital when it comes to the exploitation of mineral resources by association with the state alone.