BayFront to invest in reducing pollution, increasing production at Romania's Cupru Min

BayFront Capital Partners, which recently won the bid for Romania's copper mine Cupru Min, plans to hire top management and invest in reducing pollution at the mine, as well as increasing its production capacity, according to a recent statement.

“As we work towards a definitive agreement with the Romanian government, our priority is to finalize the appointment of a top-quality management and operational team to realize the mine’s potential. This team will collaborate with nearby communities, including Lupsa and Abrud, as well as with Alba county, and engage fully in the region’s social and cultural life,” said Mike Curtis, a BayFront partner. “We didn’t create the environmental problems at Rosia Poieni, but we’re going to fix them,” said Curtis. The company, which owns Roman Copper, is currently seeking financing for the acquisition of the mine, which it won through a EUR 200 million tender. Based in Toronto, Canada, BayFront is an investment bank focused on raising capital for companies in the metals and mining, energy, agriculture, technology and biotechnology sectors. BayFront formed Roman Copper Corp. in late 2011 as the vehicle to bid for Cupru Min. Roman Copper Corp. BayFront denied links with either Stephen Roman or Frank Timis, as Romanian media had suggested. Even though official sources said the buyer does not have to meet a minimum investment the copper mine, Economy Minister Lucian Bode recently said the environmental investments required are of EUR 19 million. Roman Copper Corp beat off Australian OZ Minerals, Bulgarian Ellatzite-Med AD and Dundee Holding from the Netherlands in the bid for copper mine Cupru Min Abrud in Romania. The Bulgarian firm was disqualified just before the start of the bid. The starting price in the bid on March 26 was EUR 57.3 million. Cupru Min Abrud has estimated reserves of 900,000 tonnes of copper at Rosia Poieni. However, only a small amount of of it can be extracted each year. The investor needs to pay a royalty on copper extracted, of 4 to 6 percent, to the Romanian state. Romania’s Cupru Min ended 2011 with EUR 37.9 million in sales, 41 percent above the 2010 level, and a single functional production line of the existing four. editor@romania-insider.com