Monopoly to be eliminated on scrap metal market

The monopoly of the state-owned company Metalferos on sales and exports of ferrous and non-ferrous metals will be ended, under a set of legislative measures approved by the Government in an attempt to further liberalize this market. After the measures receive the Parliament's endorsement, all the companies meeting the established requirements will be able to obtain a license for the respective activities. Earlier the requirements were so strict that only Metalferos could meet them. “Following debates, we established a set of conditions that seem reasonable”, said Economy Minister Valeriu Lazar. Under the new requirements, the applicant shall have a minimum own capital of 4 million lei; proof of experience; at least 2 hectares of paved area and closed processing facilities on at least 400 square meters; a crane lifting at least 30 tonnes, scales and other equipment. At the same time, the license fee will rise from 2,500 lei to 100,000 lei. “This is a reasonable fee, bearing in mind that the liberalization of this market could cause a wave of theft and misappropriation of metal-containing equipment from key companies across the country, a situation which we had witnessed in the early 1990'. The size of the fee will be a selection factor to determine responsible companies. We will also need to intensify control in this area”, said Minister Lazar. He added that, according to estimates, of the 80 companies working on this market – one engaged in exporting, the rest in collecting – only 7 currently meet the requirements for the license. The major recipient of the exports is the Rybnitsa foundry, which is located in the Transnistrian region and thus is not under the de facto jurisdiction of the Moldovan authorities.