American company, interested in privatization of Hunedoara Energy Complex

US-based company Quintana Minerals Corporation has submitted a request to the Department for Energy, asking for detailed information on the Hunedoara Energy Complex for analyzing a strategic investment  in the light of the expected privatization of the state-owned company, reads Mediafax.

“The written statement indicating Quintana’s interest in the privatization of the HEC is extremely important. We are talking about a very large mining profile company. It is the second largest holder of coal reserves in the United States after the Federal Government. It would be a major opportunity for preserving jobs in the Hunedoara County. I believe it’s important for the HEC to become interesting to a company with a rather mining profile, like Quintana, than an energy profile, precisely for the particularities of the Hunedoara-based company. I hope the Government and the Ministry, along with the HEC leadership to capitalize on the positive signals coming from overseas”, said to Mediafax Razvan Nicolescu, Minister Delegate for Energy, who will not be part of the new Ponta Government.

Quintana Minerals Corporation was established in 1963 in Houston, Texas, as a subsidiary of Quintana Petroleum Corporation, operating in the exploration and production of oil, gas and coal industry.

In his visit in the US in September 2014, Razvan Nicolescu met with representatives of several companies, among which Quintana Minerals Corporation. Last month, he gave the HEC leadership 1-montgh ultimatum to draft a viable strategy to revitalize the company which acutely needs acutely investment funds.

Set up in 2012 following the merger between “Electrocentrale” Deva, “Electrocentrale” Paroseni and “Societatea Naţională a Huilei “, the Hunedoara Energy Complex is controlled by the Romanian State through the MInistry of Economy. Its privatization, approved in March 2013, shall be carried out by increasing the share capital by raising private capital from a strategic investor that will have a 51 percent stake in the company following issuance new shares.

In November 2014, the Department for Energy announced that investors interested in the privatization of the HEC could submit a letter of interest in this regard, the deadline for sending such letters being December 5, 2014.