Romanian government delays Kopex machinery and equipment contract

Contrary to a previous announcement, Katowice-based mining machinery producer Kopex will not execute its $24 million contract with Romanian coal mining consortium Compania Nationala a Huilei (CNH) this year. Romanian authorities are reassessing the gurantees that the Romanian government gave when the contract was signed. In April 2000, Kopex signed contracts with CNH to carry out part of the work connected with upgrading the Coroiesti coal processing plant. Kopex was to supply mining machinery and equipment, while Japan-based Itochu Corporation was to be responsible for upgrading the power-generating portion of the plant. Guarantees from the Romanian government were a condition of the contract becoming effective. Talks to renegotiate the the government's guarantees will be held on December 21. Due to the delay, Kopex's revenues in 2001 will be 20% lower than last year, amounting to zl. 250 million. (Puls Biznesu, p. 11), M.T.