Romanian government plans to change mining royalties setting new benchmark

The Romanian government plans to change mining royalties setting new benchmark on the prices registered at international commodities exchanges, a new draft bill indicates.

In Romania, mineral resources in the territory and in the basement of the country and the continental shelf, economic zone in the Black Sea are considered exclusive public property belonging to the Romanian state.

Putting their value by mining activities result in an obligation to holders of licenses or permits to pay royalty fees on mining.

The new benchmark for royalties will represent the average price of each metal (USD per quantity) on the international commodities markets (LME in the UK, Boerse in Germany, KMD Group or KITCO) calculated by the Romanian government in the last quarter of each year for the following year.

Holders of permits or licenses in Romania are now required to pay to the state budget a royalty for operating activities (including experimental operation performed during exploration activities).

Mining due to the state budget is set at the end of the license or the operating permit as follows: 5 percent of the value of iron ore mining, non-ferrous, aluminum and aluminous rocks, radioactive, rare and disperse, precious and semiprecious stones, 4% percentof the value of coal mining, 6 percent of the value of mining for precious metals.

Other royalties are due for the production of metallic substances and other resources.