Romania’s MPI gets concession licence for EUR 400 mln vertically integrated magnesium mining and processing

The licence was approved by Order No. 529 of September 3, 2026 and published in the Official Gazette of Romania, Part I, No. 754 of September 7, 2026.

The company’s representatives described the project as a first at European level, at a time when the EU is stepping up efforts to secure supplies of critical raw materials essential to the energy transition and the development of several industrial value chains.

Starting from the licence, the shareholders plan to develop an integrated value chain, with total investment expected to reach around EUR 400 million. The Valea Dobra deposit, located near the town of Răşinari, has estimated resources of more than 50 million tonnes.

The project is designed with a mixed financing structure comprising equity, bank financing and public financing instruments at both national and European level.

The exploitation licence represents an essential legal step towards developing the mineral resource, but the project still requires the completion of separate authorisation procedures under environmental and construction legislation.

These procedures are already being prepared, and MPI is in dialogue with the competent authorities to establish and complete the necessary steps for both the development of the Valea Dobra operation and the future industrial unit in Sălişte, the company’s representatives said.

The project is designed to transform the ore into high-purity products for European industries. At subsequent stages of development, the technological flow could be extended to include the production of metallic magnesium.

The first component of the project involves exploiting the Valea Dobra deposit, with the ore undergoing primary crushing at the extraction site. The material will then be transported to the processing plant in Sălişte, where the more advanced stages of processing will take place.

The European Union faces significant import dependence for magnesium and magnesium-based products, exposing European industries to risks associated with the concentration of global supply chains. Against this backdrop, developing an integrated European supply chain covering both mineral extraction and industrial processing has strategic relevance.

Romanian engineering and infrastructure companies affiliated with MPI - Electromontaj, Emfor, Iproeb and Electrotehnica EM - will also be involved in the project, according to MPI representatives.