Calls for tender in fields of mining were issued by the Minister of National Development in four fields of hydrocarbon research (Southeast and West of the Szeged Basin and North and South of Battonya-Pusztaföldvár) and three fields of geothermal energy research (Ferencszállás, Kecskemét and Jászberény) in August 2013.

Every one of the six tenders received on the date specified, 15 November 2013, concerning four fields altogether, qualified as valid as regards the formal requirements.

Since the publication of the calls, the Hungarian Office of Mining and Geology has operated a Data Room where they have regularly provided information in over a hundred questions that have emerged especially with reference to the documents to be submitted. There were 20 inquirers altogether purchasing 44 calls to tender, after which those consulting the Office wished to have an insight into the geophysical and geological data primarily.

The assessment of the tenders for a concession is to be completed within ninety days following the submittal. The evaluation of the valid tenders is to be performed by the Qualifying Committee. Based on the committee’s recommendations, it is the Minister to decide on awarding the concession. The detailed aspects of the assessment, the specification of regulations on the licensing procedure, performance and completion of the concession activity and the wording of the draft concession contract are included in the call for tender. 

The applications received concern areas West of the Szeged Basin, North and South of Battonya-Pusztaföldvár and in Jászberény. In order to avoid disturbance in the work of the Qualifying Committee and ensure competition neutrality, officials concerned in the concession tender are unable to reveal further information until the publication of a memo on the applications received and their assessment.

Investors’ interest and the feedback from participants have confirmed the position of the Ministry of National Development that the mining concession system is in compliance with the international practice in the industry. After summarising experience from the current tenders and fine-tuning the conditions and procedural order, the Ministry is to issue new calls.

(Ministry of National Development Communications Department, Hungarian Office for Mining and Geology)