On November 3, the Chamber of Deputies adopted the draft law initiated by PNL amending the Mining Law 85 of 2003 so that part of mining royalties due to the state budget is transferred to the local authority on whose administrative territory the exploitation for which the royalty was collected takes place.

Also, by July 1, 2021, the Government must change the organizational and operational structure of the National Agency for Mineral Resources – NAMR in order to change its status from the agency to a national regulatory authority in the field of mineral resources and oil. The measure has long been required by the business community to allow for additional staffing, modernization of technical infrastructure, increased institutional strength, including through reasonable funding and independence.

With the entry into force of the new form of the Mining Law, mineral exploitation projects will most likely benefit from additional support from local communities and authorities, as they will have direct financial gains from such economic activities.

Thus, the mining royalty is defined as “the amount due according to the law by the holder for the concession / administration of the activities of exploitation of mineral resources, goods of the public domain of the state”. Currently, the mining royalty is revenue to the state budget; once the new form of the Mining Law enters into force, in case of mineral water concession, 35% of the royalty value (4 euro per 1 thousand liters) will go to the local budget of the county on whose territory there is exploitation activity, 45% to the local budget of the commune, of the city or of the municipality, as the case may be, on the territory of which there is exploitation activity, and 20% to the state budget.

Similarly, for the royalty due by oil and natural gas companies, 25% will go to the local budget of the county and 25% to the local budgets of the administrative-territorial units; the remaining 50% will further fuel the state budget.

The law was passed by a large majority, with 237 deputies voting in favor, none against, and 23 deputies abstaining.