Three companies, on the short list for Remin

• Andrew Prelea, the CEO of African Consolidated Resources: "Mining in the region, a success story for Baia Mare and Romania"

Three companies have expressed their interest in the reopening of the mines which are among the assets by Remin, according to some sources close to the project. "following the announcement he made, we have launched three letters of intent, and in the coming period we will meet with each of them in turn to evaluate a possible project in Baia Mare", Remin officials told us yesterday.

Among investors who had already expressed interest in the relaunch of the activity of Remin are African Consolidated Resources (AFCR), which has recently concluded a memorandum of understanding with Remin Baia Mare, as well as Metals Finance Limited, a company specializing in mining activities present in Australia and South Africa.

The memorandum between the AFCR and Remin have validity period of six months, offering the possibility of conducting the necessary due-diligence activities.

Andrew Prelea, the CEO of the Romanian branch of the AFCR, yesterday gave us an exclusive statement: "The due diligence project is progressing as expected. The preliminary analyses have concluded, and the team of experts regularly travels to Romania to reach our goals within the established deadlines".

He said that four experts frequently come to Romania, for periods of 2-3 weeks, meaning that the evaluation and the preparation of the mining project of Baia Mare will take place according to schedule: quickly and efficiently.

Andrew Prelea also said that the company is currently conducting an environmental study to thoroughly observe the impact on the area.

"This study is looking to identify the current situation of the environment, to allow the project to comply with the environmental regulations of Romania and of the EU, in order to have a solid position when it comes to reinvigorating mining in the region", the CEO of African Consolidated Resources for Romania concluded.

Also interested, besides African Consolidated Resources is Metals Finance Limited, a company specializing in mining activities present in Australia and South Africa.

Metals Finance, a company registered in Great Britain, has operations in Australia, Chile and in Eastern Europe, where it is mining nickel and other non-ferrous resources.

Remin Baia Mare handles 118 mine waste dumps which store over 4.7 million cubic meters of sterile, and 18 tailing ponds for the flotation gangue.

The company of Baia Mare entered insolvency in 2009. Its main creditor was the Authority for the Administration of State Assets (AAAS) which recently took over the receivables from the National Tax Administration Agency (ANAF).

The Creditors' Committee also includes Electrica Furnizare Transilvania Nord and the Mayoralty of the city of Baia Mare.

Together with the Authority for the Administration of State Assets (AAAS), the General Department of Public Finances of Maramureş managed receivables with a total value of 475.337.000 lei at Remin Baia Mare.

For helping rekindle mining activity, the Ministry of the Economy decided to amend the law of mining, so that the mining perimeters which are currently in preservation or closed down can be opened again.

According to the statements of Varujan Vosganian, amending the law of mining, will allow beginning the negotiations with the investors in order to resume the perimeters which are currently in preservation or closed down, thus avoiding the bankruptcy of companies in the mining industry, such as Remin Baia Mare.

• Werco Trade AG has acquired the pyrite warehouses of Remin

Recently, the government sold the pyrite deposits of Remin for 53 million dollars to Swiss trading company, according to the president of the Authority of the State Assets (AAAS), Adrian Constantin Volintiru. He said that the deal is part of the Government's new "way of looking at things" when it comes to optimizing revenues.

The call for bids for the sale of the pyrite was organized by the receivers on March 21st, and the contract was signed in the first ten days after the adjudication.

Werco Trade AG paid 105 dollars per ton and pledged to pay the whole quantity of pyrite in installments, as it ships it away from Remin. The latter has 500,000 tons of pyrite in its warehouses.

"As the estimated capacity is 15,000 tons of pyrite a month, transporting the entire quantity of pyrite recorded in the accounting books would take an estimated 33 months. The buyer has pledged to transport the entire quantity of pyrite within at most four years from the signing of the sale contract. So far, the winner of the call for bids has already paid for the first two tranches, of 15,000 tons of pyrite each, with the first tranche set to be transported", according to the AAAS.

For the first tranche, the Swiss company has paid 1.6 million dollars, (106.7 dollars per ton), and for the second one the price has been set at 1.55 million dollars (103.8 dollars per ton).

The pyrite comes from the Şuior mine and contains over 12 grams of gold per ton.

Werco Trade is a commodities trader from Switzerland, with operations in Romania, Poland, Ukraine.

The president of the Swiss company Werco Trade, Marco Wermelinger, has also conducted various activities in Romania, since back in 2008, with two Romanian businesspeople.

Market sources say that the Swiss of Werco Trade had close ties to the former executive director of Romaltyn, Nicolae Trifa who also served as import-export manager at Remin Baia Mare.