"Romania Mining Report 2013" now available at Fast Market Research

We expect Romania's mining sector to see only modest growth over the coming years as coal output, which accounts for the majority of the mining sector's value, sees little expansion. However, one bright spot, which will mitigate against some of the losses in the coal sector, is that the gold sector will see rapid growth from its low base. Overall, we expect the mining sector value to decline to US$5.93bn in 2017, from US$5.4bn in 2012.

In one of the most important mining projects in the country during 2012, Romanian energy officials revealed the Chinese government is considering investing in the EUR700mn (US$997.7mn) Doicesti coalfired power plant in southern Romania. China Huadian Engineering Company signed an MoU with stateowned utility Termoelectrica, with the former understood to be preparing a feasibility study on the project.

Full Report Details at
- http://www.fastmr.com/prod/607193_romania_mining_report_2013.aspx?afid=301

Coal Sector In Decline

Romania coal production is set for declines over the coming five years, continuing a decade-long trend as falling grades and environmental concerns weigh on the sector. Romania is one of Europe's largest coal producers, with output in 2011 coming in at 35.3mnt , with the majority being lignite coal. Romania possesses 801mnt of hard coal and 1.36bnt of lignite coal reserves, some of the largest in Eastern Europe.

However, these deposits are not only low-grade but also by lack sufficient maintenance and investment. Our Power team estimates that in 2011 coal-fired generation accounted for 39.5% of supply, with gas-fired power claiming a share of 15.6%. Hydroelectricity contributed an impressive 26.8%, with nuclear energy accounting for 14.8%.

In 2011, the European Commission (EC) called on member states to shut down loss-making hard coal mines by October 1 2014, in a move that would affect coal mines in Romania's Jiu valley. The decision requests the shutdown of the mines, but leaves lignite coal mines intact and allows state subsidies for hard coal mines that have a closure plan in place. The decision brings forward a hard coal mine closure plan to 2018.

Gold Sector To Drive Growth

Romania's gold sector is one of the bright spots in an otherwise bleak outlook for Europe's mining sector, with the country set to see rapid growth in gold output, albeit from a low base. Romania produced 16koz (thousand ounces) of gold in 2011, accounting for a fraction of a percent of Europe's gold output. While the country will not become a major European gold producer, we expect to see output increase rapidly to 114koz per annum in 2017. Much of this growth will be driven by El Dorado's (which acquired European Goldfields in February 2012) Certej mine, one of the largest gold mines in Europe. While the mine has relatively low grades, at 1.6g/t, it is likely to remain profitable given elevated gold prices. We are bullish on gold, expecting prices to average US$1,775/oz in 2013 and US$1,825/oz in 2014.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Global Mining Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Mining Industry
- Global Mining Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry
- Sustainability in the Global Mining Industry 2012-2013 - Market Trends and Opportunities, Profitability and Budget Forecast, Mining Industry Procurement and Marketing Initiatives
- Global Mining Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in the Global Mining Industry
- Global Mining Survey 2012-2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry