The Ministry of National Development together with the Hungarian Office for Mining and Geology and the Geological and Geophysical Institute of Hungary held an investment forum on the 14th of June 2013, in the Karolyi Csekonics Residency in Budapest. Potential investors, trade union representatives and other interested parties had been informed about the Hungarian legal framework of the proposed mining concessions as well as about the EU member states’ working solutions and characterized basic conditions.

Forum attendees had been welcomed by Prime Minister's chief adviser, Ms Réka Szemerkényi and Mr Pál Kovács Minister of State for Climate and Energy Affairs. Réka Szemerkényi underlined Hungary’s national economic interest in utilizing mineral wealth responsibly. Hungary will certainly find partners who will be able to create added value with their cooperation.

Minister of State Pál Kovács claimed that the domestic energy security is the Hungarian government’s basic interest, regarding the dysfunctions of the European market (i.e. loop flow, low quota prices and negative electricity prices). In this aspect the Hungarian mineral wealth represents a value that can play an important role in securing the energy supply of our country – he added.

Participants got insight into the Hungarian hydrocarbon and geothermal sector’s position, and also learned about the legal, economic, tax and environmental framework of the concession process. Invited experts held presentations on industrial practice, service experience and legal issues.

Two areas had been identified by the representatives of the industry sector where the Hungarian legislative framework should be slightly modified. Making the calculation method of royalty fee more predictable, clarifying the conditions of the official authorization mechanism of the hydraulic fracturing (fracking) technology would strengthen the stability of the investment environment.

The event will be closed by a speech of Ms Anita Orban, Ambassador for Energy Security of the Ministry of Foreign Affairs in the evening.

Seven public calls for the exploration, development and production of traditional and non-traditional hydrocarbons and increased use of geothermal energy will be launched under a concession contract by the instruction of the Minister for National Development.

Hungarian and international representatives had been properly informed by the Ministry during the forum in order to promote effective consession procedures.

(Ministry of National Development)