Annex 1.3

LONG TERM PROGRAM

1. The principles of the implementation program of the “Mining Industry Strategy during 2004-2010”

2. The development in the number of people employed in the Romanian mining industry during 2003-2007

3. The development in the budget subsidies during 2003-2010

4. The development in the number of people employed in the hard coal sector: ƒ CNH Petrosani ƒ SC Banat Anina

5. The development in the number of people employed in the lignite sector: ƒ CNLO Targu Jiu ƒ SNC Ploiesti

6. The development in the number of people employed in the ore mining sector: ƒ REMIN Baia Mare ƒ SC Bucovina Min ƒ MINVEST Deva ƒ SC Moldomin ƒ SC Cuprumin ƒ SC Baita ƒ CNU Bucharest

7. Cost estimate for the redundancy program in the mining companies during 2004-2006

8. The cost of the social program for the reconstruction of the affected mining regions during 2003-2006.

1. The principles of the implementation program of the “Mining Industry Strategy during 2004-2010” to be discussed with representatives of IMF

A. Principles regarding the budget subsidies

The mining companies within the Ministry of Economy and Commerce shall prepare balanced budgets that will ensure the necessary funds for paying all due contributions regarding retention at the source, local taxes salary taxes, as well as the utilities, based on the analysis made for each mine within the company, considering:

A1. For the mining companies in the lignite and mineral sectors, during 2004-2006:

ƒ a decrease by 25% of subsidies and capital allocations comparing to the previous year; ƒ granting of subsidies and capital allocations through 2006, with respect to the first bullet of this paragraph; ƒ offering the potentially viable mines/quarries for privatization until the end of 2005; ƒ maintaining in operation within the mining companies only the operators of the mines/quarries that will not be privatized and will not require any budget subsidies.

A2. For the mining companies in the hard coal and uranium sectors, during 2004-2010:

ƒ a decrease by 14.3% of subsidies and capital allocations, comparing to the previous year; ƒ granting of subsidies and capital allocations through 2010, with respect to the first bullet of this paragraph; ƒ offering the potentially viable mines/quarries for privatization until the end of 2009; ƒ maintaining in operation after 2010 the mines that will not be privatized and will not require any budget subsidies.

A3. For all mining companies within the Ministry of Economy and Commerce and for the above- mentioned period:

ƒ tax exemptions for the contributions to the state budget, with the same percentage and for the same period of time as for the granting of subsidies and capital allocations.

B. Criteria for the selection of mines proposed for the cessation of activities:

ƒ the ratio (losses from mining operations + subsidies for production + subsidies for energy costs + social allocations) / revenues; ƒ critical situations caused by geo-mining conditions and/or depletion of deposits; ƒ for the mines/quarries that remain within the mining companies to maintain the necessary funds for payment of local taxes, retention at source and salary taxes in the conditions stipulated at A1, A2 and A3 for the respective year.

2. Evolution of the Romanian mining sector staff a=existent staff at the beginning of the year b=no. of staff reduced during the year no. Staff as of 01.01.07 Year Remaining Programmed out of which: Redeployed to mining execution of Specification 2003 2004 2005 2006 2007 privatized units Total activity closure works a 18325 17342 15492 14492 13462 Hard Coal Sector b 983 1850 1000 1030 1020 0 13462 13462 0 a 23929 21506 19906 17873 15359 Lignite Sector b 2423 1600 1033 2524 0 14818 ** 541 0 541 a 23592 18093 14081 10642 7098 Mineral Sector b 3509 4002 3439 3544 1500 *** 4698 * 2400 *** 1500*** 900 a 2000 2000 1700 1520 1400 Uranium Sector b 0 300 180 120 0 0 1400 1400 0 a 67846 58941 51179 44527 37319 TOTAL b 6915 7752 5652 7218 2520 *** 19516 17803 *** 16362*** 1441

*employees of mines for which there will not be any interested investors will quit in January 2007. ** out of which 2946* mines and small open pits ***1,500 employees will quit in January 2007

3. The state support for the mining sector between 2003 – 2010

Sector Indicator Year Actual Budgeted Forecast 2003 2004 2005 2006 2007 2008 2009 2010 Hard Coal Total 3581559 4098328 3324339 2942564 2603656 2343983 2114293 1911589 Total I 1705783 2722392 2038256 1746787 1496996 1282926 1099467 942244 subsidies 1172443 2230960 1617099 1385854 1187677 1017840 872288 747551 capital allocations 323758 271432232617 199353 170845 146415 125477 107534 investment 209582 220000 188540 161579 138473 118671 101701 87158 Total II 1875776 1375936 1286083 1195777 1106660 1061057 1014826 969345 debts cancelled 1875776 1375936 1286083 1195777 1106660 1061057 1014826 969345 Lignite Total 3690206 23120131734009 1300508 0 0 0 0 Total I 754594 727354 545515 409137 subsidies 374548 344147 258110 193583 capital allocations 253046 210207 157655 118241 investment 127000 173000 129750 97313 Total II 2935612 1584659 1188494 891371 debts cancelled 2935612 1584659 1188494 891371 Minerals Total 5203028 43363843250038 2437529 0 0 0 0 Total I 4245297 3573222 2679917 2009937 subsidies 3843567 3231203 2423402 1817552 capital allocations 192330 169019 126764 95073 investment 209400 173000 129750 97313 Total II 957731 763162 570122 427591 debts cancelled 957731 763162 570122 427591 Uranium Total 340435 291753 250032 214278 183636 157376 134871 115585 Total I 323369 252316 216235 185313 158813 136103 116640 99961 subsidies 248616 186775 160066 137177 117560 100749 86342 73995 capital allocations 21153 1754115033 12883 11041 9462 8109 6949 investment 53600 48000 41136 35254 30212 25892 22189 19016 Total II 17066 39437 33798 28964 24823 21273 18231 15624 debts cancelled 17066 39437 33798 28964 24823 21273 18231 15624 Total mining sector Total 12815228 110384788558418 6894878 2787292 2501359 2249164 2027173 Total I 7029043 7275284 5479922 4351175 1655809 1419029 1216107 1042204 subsidies 5639174 5993085 4458678 3534166 1305238 1118589 958631 821547 capital allocations 790287 668199532069 425551 181886 155876 133586 114483 investment 599582 614000 489176 391457 168685 144563 123891 106174 Total II 5786185 3763194 3078496 2543703 1131483 1082330 1033057 984969 debts cancelled 5786185 3763194 3078496 2543703 1131483 1082330 1033057 984969 4. Dynamics of the hard coal sector staff

a=existent staff at the beginning of the year b=no. of staff reduced during the year no.

Year Programmed Specification 2003 2004 2005 2006 2007 2008 2009 2010 a 17035 16144 14444 13444 12444 11444 10944 10444* CNH Petrosani b 891 1700 1000 1000 1000 500 500 500 a 1290 1198 1048 1048 1018 998 998 968* S.C. Banat Anina b 92 150 0 30 20 0 30 30 a 18325 17342 15492 14492 13462 12442 11942 11412 TOTAL b 983 1850 1030 1020 500 530 530

*employees of mines that will not be privatized or that will not be able to continue their activity without benefiting form subsidies or without incurring loss and arrears ting from 01.01.2011 will be laid off in January 2011.

The Required State Budget Support for the HARDCOAL SECTOR

Year Forecast No Indicator unit Actual 2003 Budgeted 2004 2005 2006 2007 2008 2009 2010 A B C 1 2 3 4 5 6 7 8 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 7647367 8555165 7846055 7485996 7185102 7026467 6818760 6630125 a11 Sales Revenues lei million 3300760 4323505 4392010 4387691 4403373 4485374 4491055 4491055 a2 TOTAL EXPENSES lei million 9683591 8555165 7846055 7485996 7185102 7026467 6818760 6630125 a3 TOTAL LOSS lei million 2036224 0 0 0 0 0 0 0 b THE STATE SUPPORT lei million 3581559 4098328 3324339 2942564 2603656 2343983 2114293 1911589 b1 TOTAL I lei million 1705783 2722392 2038256 1746787 1496996 1282926 1099467 942244 b11 Subsidies lei million 1172443 2230960 1617099 1385854 1187677 1017840 872288 747551 b12 Capital Allocations lei million 323758 271432 232617 199353 170845 146415 125477 107534 b13 Investment lei million 209582 220000 188540 161579 138473 118671 101701 87158 b2 TOTAL II lei million 1875776 1375936 1286083 1195777 1106660 1061057 1014826 969345 b21 Debts cancelled lei million 1875776 1375936 1286083 1195777 1106660 1061057 1014826 969345 c STAFF AS OF: 01.01 no. 18325 17342 15492 14492 13462 12442 11942 11412

The Required State Budget Support for CNH Petrosani

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 2007 2008 2009 2010 A B C 1 2 3 4 5 6 7 8 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 7086687 8013691 7339168 7004578 6706111 6556094 6356106 6178856 a11 Sales Revenues lei million 3010647 4023000 4067404 4067404 4067404 4142404 4142404 4142404 a2 TOTAL EXPENSES lei million 9036753 8013691 7339168 7004578 6706111 6556094 6356106 6178856 a3 TOTAL LOSS lei million 1950066 0000000 b THE STATE SUPPORT lei million 3368281 3913284 3165757 2806657 2487184 2244167 2028751 1838279 b1 TOTAL I lei million 1571705 2605222 1937842 1660730 1423245 1219722 1045301 895823 b11 Subsidies lei million 1080413 2152073 1549493 1327915 1138023 975286 835820 716298 b12 Capital Allocations lei million 301710 253149 216949 185925 159338 136552 117025 100291 b13 Investment lei million 189582 200000 171400 146890 125885 107883 92456 79235 b2 TOTAL II lei million 1796576 1308062 1227915 1145927 1063939 1024445 983450 942456 b21 Debts cancelled lei million 1796576 1308062 1227915 1145927 1063939 1024445 983450 942456 c STAFF AS OF: 01.01 no. 17035 16144 14444 13444 12444 11444 10944 10444

THE NATIONAL HARD COAL COMPANY (CNH) PETROSANI

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization - - - Cease of investment and Vulcan mine – partially preparation works Uricani mine – partially - - Lupeni mine – partially Petrila mine – partially Cease of mining activity and Valea de Brazi mine Vulcan mine – partially promotion of the GD for the Aninoasa mine Uricani mine – partially - approval of closure decision Lupeni processing plant Lupeni mine – partially Petrila mine – partially

The Required State Budget Support for S.C. Banat Anina S.A.

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 2007 2008 2009 2010 A B C 1 2 3 4 5 6 7 8 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 560680 541474 506887481418 478991 470373 462654 451269 a11 Sales Revenues lei million 290113 300505 324606320287 335969 342970 348651 348651 a2 TOTAL EXPENSES lei million 646838 541474 506887481418 478991 470373 462654 451269 a3 TOTAL LOSS lei million 86158 0 0 0 0 0 0 0 b THE STATE SUPPORT lei million 213278 185044 158583 135905 116471 99816 85542 73309 b1 TOTAL I lei million 134078 117170 100415 86056 73750 63204 54166 46420 b11 Subsidies lei million 92030 78887 67606 57939 49654 42554 36468 31253 b12 Capital Allocations lei million 22048 18283 15669 13428 11508 9862 8452 7243 b13 Investment lei million 20000 20000 17140 14689 12588 10788 9246 7923 b2 TOTAL II lei million 79200 67874 58168 49850 42721 36612 31376 26889 b21 Debts cancelled lei million 79200 67874 58168 49850 42721 36612 31376 26889 c STAFF AS OF: 01.01 no. 1290 1198 1048 1048 1018 998 998 968

S.C. BANAT ANINA S.A.

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 2007 2008 Mine promotion for privatization -- - - - Ponor Mine* Cease of investment and preparation - - - - - works Cease of mining activity and promotion of the GD for the approval of closure Cozla Mine - - - - decision

* to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget)

5. Dynamics of the lignite sector staff

a=existent staff at the beginning of the year b=no. of staff reduced during the year no. Staff as of 01.01.07 Year Remaining Programmed out of which: Redeployed to privatized mining execution of Specification 2003 2004 2005 2006 2007 units Total activity closure works a 17999 16769 16169 15639 13980 CNLO Tg. Jiu b 1230 600 530 1659 0 13774** 216 0 216 a 5930 4737 3737 2234 1369 SNC Ploiesti b 1193 1000 503 865 0 1044* 325 0 325 a 23929 21506 19906 17873 15349 TOTAL b 2423 1600 1033 2524 0 14818 541 0 541

*employees of mines that will not be privatized or that will not be able to continue their activity without benefiting form subsidies or without incurring loss and arrears will be laid off in January 2007.

The Required State Budget Support for the LIGNITE SECTOR

Year Forecast No. Indicator unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 14848904 14857560 14851517 14675482 a11 Sales Revenues lei million 13885076 12511206 12518641 12650421 a2 TOTAL EXPENSES lei million 15625969 14857560 14851517 14675482 a3 TOTAL LOSS lei million 777065 0 0 0 b THE STATE SUPPORT lei million 3690206 2312013 1734009 1300508 b1 TOTAL I lei million 754594 727354 545515 409137 b11 Subsidies lei million 374548 344147 258110 193583 b12 Capital Allocations lei million 253046 210207 157655 118241 b13 Investment lei million 127000 173000 129750 97313 b2 TOTAL II lei million 2935612 1584659 1188494 891371 b21 Debts cancelled lei million 2935612 1584659 1188494 891371 c STAFF AS OF: 01.01 no. 23929 21506 19906 18873

The Required State Budget Support for CNLO Targu Jiu

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 13227531 13298752 13500000 13500000 a11 Sales Revenues lei million 13072212 11601605 11700000 11900000 a2 TOTAL EXPENSES lei million 13641485 13298752 13500000 13500000 a3 TOTAL LOSS lei million 413954 0 0 0 b THE STATE SUPPORT lei million 2950866 1649467 1237100 927825 b1 TOTAL I lei million 278299 282368 211776 158832 b11 Subsidies lei million 0 0 0 0 b12 Capital Allocations lei million 183299 152368 114276 85707 b13 Investment lei million 95000 130000 97500 73125 b2 TOTAL II lei million 2672567 1367099 1025324 768993 b21 Debts cancelled lei million 2672567 1367099 1025324 768993 c STAFF AS OF: 01.01 no. 17999 16769 16169 15639

THE NATIONAL LIGNITE COMPANY OLTENIA

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization Jilt North Open pit*** Jilt South Open pit*** Tismana I and Tismana II Open pit** Pinoasa open pit** Open pits within CNLO - Garla Open pit** Poiana Open pit** Poiana Open pit** Seciului Open pit*** Cease of investment and Horasti Mine* preparation works Lupoaia Mine* - Plostina Mine - Dragotesti Mine* Albeni mine (wells 8, 9)* Cease of mining activity and Albeni Mine (partially : wells 1-6) Horasti Mine* promotion of the GD for the Lupoaia Mine* approval of closure decision - Plostina Mine Dragotesti Mine* Albeni mine (wells 8, 9)*

* to be closed, if there aren’t interested investors ** initiation of the privatization process according to the established program for the energy complex *** initiation of the privatization process according to the established program for the Craiova energy complex

Open pits within CNLO do not require subsidies; they will continue operations after 01.01.2007, in case they will not find private investors.

The Required State Budget Support for SNC Ploiesti

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 1621373 1558808 1351517 1175482 a11 Sales Revenues lei million 812864 909601 818641 750421 a2 TOTAL EXPENSES lei million 1984484 1558808 1351517 1175482 a3 TOTAL LOSS lei million 363111 0 0 0 b THE STATE SUPPORT lei million 739340 662546 496909 372683 b1 TOTAL I lei million 476295 444986 333739 250305 b11 Subsidies lei million 374548 344147 258110 193583 b12 Capital Allocations lei million 69747 57839 43379 32534 b13 Investment lei million 32000 43000 32250 24188 b2 TOTAL II lei million 263045 217560 163170 122378 b21 Debts cancelled lei million 263045 217560 163170 122378 c STAFF AS OF: 01.01 no. 5930 4737 3737 3234

THE NATIONAL COAL SOCIETY PLOIESTI (SNC) SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006 Action Year 2004 2005 2006 Mine promotion for Dealu open pit privatization Carbunaru* Bobota open pit* - Magureni open pit* - Racos open pit* Aninoasa open pit + Poienari mine + Jugur mine* Ip Carastelec open pit Cease of investment Rosioara mine (Filipesti) and preparation works Boteni mine Valea Indarat mine Craciunesti mine Sotanga East mine - - Palanga mine Asau mine Sarmasag II mine Zaghid mine Baraolt West mine Cease of mining Cotesti mine Boteni mine Sarmasag II mine activity and Bodos mine Rosioara mine Sotanga East mine promotion of the GD Sarmasag I mine Craciunesti mine Asau mine for the approval of Varzari South mine Palanga mine Rosioara mine closure decision Budoi Tunel open pit Baraolt West mine Dealu open pit Budoi Sat open pit Zaghid mine Carbunaru* Valea Indarat mine Bobota open pit* Magureni open pit* Racos open pit* Aninoasa open pit + Poienari + Jugur mine* Ip Carastelec open pit * to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget) 6. Dynamics of the mineral sector staff a=existent staff at the beginning of the year b=no. of staff reduced during the year Staff as of 01.01.07 Year Remaining Programmed out of which: Redeployed to mining execution of Specification 2003 2004 2005 2006 2007 privatized units Total activity closure works a 8477 7248 5348 3848 2348 REMIN Baia Mare b 1229 1900 1500 1500 1500 ** 710 * 1638 ** 0 138 a 7750 6085 4585 3017 1563 MINVEST Deva b 1665 1500 1568 1454 0 1155 * 408 0 408 MOLDOMIN Moldova a 1926 1686 1336 1216 1096 Noua b 240 350 120 120 0 954 * 142 0 142 a 1470 1240 1140 969 799 CUPRUMIN Abrud b 230 100 171 170 0 799 * 0 00 a 531 491 489 489 489 Baita Bihor b 40 2 0 0 0 489 * 0 00 a 1438 1333 1183 1103 803 Bucovina min b 105 150 80 300 0 591 * 212 0 212 a 21592 18083 14081 10642 7098 TOTAL b 3509 4002 3439 3544 1500 ** 4698 2400 0 900 *employees of mines that will not be privatized or that will not be able to continue their activity without benefiting form subsidies or without incurring loss and arrears starting from January 2007 will be laid off in January 2007. ** employees to be laid off in January 2007. The Required State Support for the MINERAL SECTOR

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 7627193 6891916 5546712 4713282 a11 Sales Revenues lei million 1668153 1915936 1582241 1507952 a2 TOTAL EXPENSES lei million 10200735 6891916 5546712 4713282 a3 TOTAL LOSS lei million 2602418 0 0 0 b THE STATE SUPPORT lei million 5203028 4336384 3250038 2437529 b1 TOTAL I lei million 4245297 3573222 2679917 2009937 b11 Subsidies lei million 3843567 3231203 2423402 1817552 b12 Capital Allocations lei million 192330 169019 126764 95073 b13 Investment lei million 209400 173000 129750 97313 b2 TOTAL II lei million 957731 763162 570122 427591 b21 Debts cancelled lei million 957731 763162 572372 429279 c STAFF AS OF: 01.01 no. 21592 18083 14081 10642

The Required State Budget Support for REMIN BAIA MARE

Year Forecast No. `Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 3108480 2874484 2056387 1570444 a11 Sales Revenues lei million 723889 738307 476328 319700 a2 TOTAL EXPENSES lei million 3616996 2874484 2056387 1570444 a3 TOTAL LOSS lei million 508516 0 0 0 b THE STATE SUPPORT lei million 2042794 1748077 1311058 983293 b1 TOTAL I lei million 1641194 1449628 1087221 815416 b11 Subsidies lei million 1500750 1344078 1008059 756044 b12 Capital Allocations lei million 79044 65550 49163 36872 b13 Investment lei million 61400 40000 30000 22500 b2 TOTAL II lei million 401600 298449 223837 167878 b21 Debts cancelled lei million 401600 298449 223837 167878 c STAFF AS OF: 01.01 no. 8477 7248 5348 3848

THE NATIONAL COMPANY REMIN BAIA MARE

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization Suior* Mine Razoare* Open pit - Baia Sprie* Mine - Cavnic* Mine Central Flotation * Cease of investment and Baiut - Varatec Mine Aurum –Borzas Mine preparation works Baiut –Brainer Mina Aurum –Ilba Mine Herja Mine Aurum –Sofia Mine - Borsa –Gura Baii Mine Rodna –Rodna Mine Turt –Ghezuri-Turt Mine Aurum – Nistru Mine Cease of mining activity and Aurum –Dealu Crucii Mine Baiut - Varatec Mine Aurum –Borzas Mine promotion of the GD for the Turt –Penigher Mine Baiut –Brainer Mina Aurum –Ilba Mine approval of closure decision Baiut –Cisma Mine Herja Mine Aurum –Sofia Mine Baiut –Burloaia Mine Borsa –Gura Baii Mine Rodna –Rodna mine Turt –Ghezuri-Turt Mine Suior* Mine Aurum – Nistru Mine Razoare* Open pit Baia Sprie* Mine Cavnic* Mine Central Flotation * * to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget) The Required State Budget Support for S.C. MIN BUCOVINA S.A.

Year Forecast No. Indicator unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 515762 451695 406730 435074 a11 Sales Revenues lei million 130449 127555 120734 115274 a2 TOTAL EXPENSES lei million 424470 451695 406730 435074 a3 TOTAL LOSS (profit) lei million -91292 000 b THE STATE SUPPORT lei million 366015 291411 218558 163919 b1 TOTAL I lei million 334641 229551 172163 129122 b11 Subsidies lei million 313052 208646 156485 117363 b12 Capital Allocations lei million 11589 10905 8179 6134 b13 Investment lei million 10000 10000 7500 5625 b2 TOTAL II lei million 31374 61860 46395 34796 b21 Debts cancelled lei million 31374 61860 46395 34796 c STAFF AS OF: 01.01 no. 1438 1333 1183 1103

MIN BUCOVINA

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization - - - Cease of investment and - Lesu Ursului mine (wells 4 + 8) - preparation works Tarnita processing plant Cease of mining activity and Fundu Moldovei mine Lesu Ursului mine (wells 4 + 8) promotion of the GD for the Lesu Ursului mine (well 6) - Tarnita processing plant approval of closure decision Manaila open pit* Iacobeni mine*

* to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget)

The Required State Budget Support for MINVEST DEVA

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 2237956 2063586 1646953 1310921 a11 Sales Revenues lei million 418242 585274 475215 485699 a2 TOTAL EXPENSES lei million 3679381 2063586 1646953 1310921 a3 TOTAL LOSS lei million 1441425 0 0 0 b THE STATE SUPPORT lei million 1562663 1327063 995297 746473 b1 TOTAL I lei million 1199117 1078039 808529 606397 b11 Subsidies lei million 1092379 992758 744569 558426 b12 Capital Allocations lei million 56738 55281 41461 31096 b13 Investment lei million 50000 30000 22500 16875 b2 TOTAL II lei million 363546 249024 186768 140076 b21 Debts cancelled lei million 363546 249024 186768 140076 c STAFF AS OF: 01.01 no. 7750 6085 4585 3017

THE NATIONAL COMPANY MINVEST DEVA

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization Coranda Certej* - Iara min quartz sand* - Brad min tailing dams* Cease of investment and Baia de Aries Mine - complex preparation works Balan Fagul Cetatii Mine - - Vetel Mine Iara Mine - iron Cease of mining activity and Baia de Aries Mine - gold Baia de Aries Mine Brad Mine – the rest promotion of the GD for the Rosia Montana Open pit Vetel Mine Iara min quartz sand* approval of closure decision Teliuc Mine Iara Mina - iron Brad min tailing dams* Zlatna Hanes Mine Coranda Certej* Brad Mine - partially Balan Fagul Cetatii mine Deva Processing plant

* to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget)

The Required State Budget Support for MOLDOMIN MOLDOVA NOUA

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 774368 644397 574162 571254 a11 Sales Revenues lei million 152554 147000 168046 240579 a2 TOTAL EXPENSES lei million 1412407 644397 574162 571254 a3 TOTAL LOSS lei million 638039 0 0 0 b THE STATE SUPPORT lei million 532849 434912 326184 244638 b1 TOTAL I lei million 440849 362663 271997 203998 b11 Subsidies lei million 384338 305971 229478 172109 b12 Capital Allocations lei million 16511 13692 10269 7702 b13 Investment lei million 40000 43000 32250 24188 b2 TOTAL II lei million 92000 72249 54187 40640 b21 Debts cancelled lei million 92000 72249 54187 40640 c STAFF AS OF: 01.01 no. 1926 1686 1336 1216

THE COMMERCIAL SOCIETY MOLDOMIN MOLDOVA NOUA

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization - Banatite open pit* - Processing plant* Cease of investment and - Central mine (Valea Mare) - preparation works Cease of mining activity and Central mine (Valea Mare) - Central mine (Valea Mare) promotion of the GD for the partially - Banatite open pit* approval of closure decision Processing plant*

* to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget)

The Required State Budget Support for S.C. CUPRUMIN S.A. Abrud

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 771188 637824 657168 633075 a11 Sales Revenues lei million 189900 261000 266800 267800 a2 TOTAL EXPENSES lei million 848042 637824 657168 633075 a3 TOTAL LOSS lei million 76854 0 0 0 b THE STATE SUPPORT lei million 547911 421824 314118 235589 b1 TOTAL I lei million 498811 363563 272672 204504 b11 Subsidies lei million 436322 301572 226179 169634 b12 Capital Allocations lei million 20489 16991 12743 9557 b13 Investment lei million 42000 45000 33750 25313 b2 TOTAL II lei million 49100 58261 41446 31084 b21 Debts cancelled lei million 49100 58261 41446 31085 c STAFF AS OF: 01.01 no. 1470 1240 1140 969

THE COMMERCIAL SOCIETY CUPRUMIN ABRUD

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization Rosia Poieni Open pit* - - Cease of investment and - - - preparation works Cease of mining activity and promotion of the GD for the - - Rosia Poieni Open Pit* approval of closure decision

* to be closed if there aren’t interested investors able to provide required investment for 2005 and 2006

The Required State Budget Support for S.C. Baita S.A.

Year Forecast No. Indicator unit Actual 2003 Budgeted 2004 2005 2006 A B C 1 2 3 4 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 219439 219930 205312 192514 a11 Sales Revenues lei million 53119 56800 75118 78900 a2 TOTAL EXPENSES lei million 219439 219930 205312 192514 a3 TOTAL LOSS lei million 0 0 0 0 b THE STATE SUPPORT lei million 150796 113097 84823 63617 b1 TOTAL I lei million 130685 89778 67334 50500 b11 Subsidies lei million 116726 78178 58634 43975 b12 Capital Allocations lei million 7959 6600 4950 3713 b13 Investment lei million 6000 5000 3750 2813 b2 TOTAL II lei million 20111 23319 17489 13117 b21 Debts cancelled lei million 20111 23319 17489 13117 c STAFF AS OF: 01.01 no. 531 491 489 489

THE COMMERCIAL SOCIETY BAITA STEI

SCHEDULE OF MINING ACTIVITY CEASE AT NON-VIABLE MINES for 2004 – 2006

Action Year 2004 2005 2006 Mine promotion for privatization - Baita Society* - Cease of investment and - - - preparation works Cease of mining activity and promotion of the GD for the - - Baita Society* approval of closure decision

* to be closed if there aren’t interested investors or mines are not able to operate efficiently (no subsidies, no debts to suppliers and budget)

Dynamics of the uranium sector staff

a=existent staff at the beginning of the year b=no. of staff reduced during the year no. Staff as of 01.01.07 Year Remaining Programmed out of which: Redeployed to privatized mining execution of Company 2003 2004 2005 2006 2007 units Total activity closure works a 2000 2000 1700 1520 1400 CNU Bucharest b 0 300 180 120 0 0 1400 1400 0 a 2000 2000 1700 1520 1400 TOTAL b 0 300 180 120 1400 0 1400 1400 0

The Required State Budget Support for the National Uranium Company Bucharest

Year Forecast No. Indicator Unit Actual 2003 Budgeted 2004 2005 2006 2007 2008 2009 2010 A B C 1 2 3 4 5 6 7 8 a FINANCIAL PERFORMANCE a1 TOTAL REVENUES lei million 815520 804002 854552 1029948 1043306 945595 767319 725974 a11 Sales Revenues lei million 449235 546567 613866 711693 762051 838256 855021 888950 a2 TOTAL EXPENSES lei million 814062 804002 854552 1029948 1043306 945595 767319 725974 a3 TOTAL LOSS lei million -1458 0 0 0 0 0 0 0 b THE STATE SUPPORT lei million 340435 291753 250033 214278 183636 157376 134871 115584 b1 TOTAL I lei million 323369 252316 216235 185313 158813 136103 116640 99960 b11 Subsidies lei million 248616 186775 160066 137177 117560 100749 86342 73995 b12 Capital Allocations lei million 21153 17541 15033 12883 11041 9462 8109 6949 b13 Investment lei million 53600 48000 41136 35254 30212 25892 22189 19016 b2 TOTAL II lei million 17066 39437 33798 28964 24823 21273 18231 15624 b21 Debts cancelled lei million 17066 39437 33798 28964 24823 21273 18231 15624 c STAFF AS OF: 01.01 no. 2000 2000 2000 1700 1520 1400 1400 1400

COST ESTIMATE of THE SOCIAL PROGRAMS

- TOTAL COST: 13,064.1 lei billion –

7. Cost Estimation of the Social Program for the personnel to leave the mining companies/societies between 2004-2006

Year 2004 2005 2006 Total for the period Company/Society Severance Severance Severance Severance Layoffs Layoffs Layoffs Layoffs payments (lei payments (lei payments (lei payments (lei (no.) (no.) (no.) (no.) bill.) bill.) bill.) bill.) CNH Petrosani 1700 255 1000 150 1000 150 3700 555 S.C. Banat Anina 150 22.5 0 30 4.5 180 27 SNC Ploiesti 1000 150 503 75.45 865 129.75 2368 355.2 REMIN Baia Mare 1873 280.95 1500 225 1500 225 4873 730.95 S.C. Bucovina min 120 18 80 12 300 45 500 75 MINVEST Deva 1500 225 1568 235.2 1454 218.1 4522 678.3 S.C. Moldomin 330 49.5 120 18 120 18 570 85.5 S.C. Cuprumin 100 15 171 25.65 170 25.5 441 66.15 S.C. Baita 0 0 0 0 0 0 0 CNU Bucuresti 300 45 180 27 120 18 600 90 Total budgetary effort 7073 1060.955122 768.3 5559833.85 17754 2663.1 CNLO Tg. Jiu company effort 407 61.05 300 45 1450 217.5 2157 4771.2

* amount representing severance payment: 150,000 lei/person

Note: the amount representing severance payments for the laid off personnel can also be found in "Annex 3: Financial resources to achieve the strategy objective as Social protection and redeployment of mining sector redundant people for 2004-2006.

8. Costs of the social reconstruction program of affected mining areas between 2003 – 2006

lei bill. Passive Masures Active measures Expenses Layoffs Expenses Expenses for for the between Cost of for the the support of Company/Society Unemployment Social Cost of support of Total 2003-2006 Training temporary economic affected benefit benefit new jobs the (no.) jobs development localities economic of the area environment CNH Petrosani 4590 123.9 68.9 22.95 73.4 619.7 114.8 126.2 229.5 1379.3 S.C. Banat Anina 292 7.9 4.4 1.5 4.7 39.4 7.3 8.0 14.6 87.7 CNLO Tg. Jiu 4019 108.5 60.3 20.1 64.3 542.6 100.5 110.5 200.95 1207.7 SNC Ploiesti 3561 96.1 53.4 17.8 57.0 480.7 89.0 97.9 178.05 1070.1 REMIN Baia Mare 6102 164.8 91.5 30.5 97.6 823.8 152.6 167.8 305.1 1833.7 S.C. Bucovina min 605 16.3 9.1 3.0 9.7 81.7 15.1 16.6 30.25 181.8 MINVEST Deva 6187 167.0 92.8 30.9 99.0 835.2 154.7 170.1 309.4 1859.2 S.C. Moldomin 810 21.9 12.2 4.1 13.0 109.4 20.3 22.3 40.5 243.4 S.C. Cuprumin 751 20.3 11.3 3.8 12.0 101.4 18.8 20.7 37.55 225.7 S.C. Baita 80 2.2 1.2 0.4 1.3 10.8 2.0 2.2 4 24.0 CNU Bucuresti 600 16.2 9.0 3.0 9.6 81.0 15.0 16.5 30 180.3 TOTAL 27597 745.1 414.0 138.0 441.6 3725.6689.9 758.9 1379.9 8292.9

The following ratios have been used (based on the subsidies phasing out study within the World Bank-financed project): unemployment benefit: lei 27 mill./person social benefit: lei 15 mill./person training: lei 5 mill./person cost of temporary job: lei 40 mill./job for 40% of the laid-off people cost of new job: lei 135 mill./job expenses for the economic development of the area: lei 5 mill./inhabitant x no. of unemployed x 5 inhabitants/1 unemployed expenses for the support of the economic environment: lei 5.5 mill./inhabitant x no. of unemployed x 5 inhabitants/1 unemployed expenses for the support of affected localities: lei 10 mill./inhabitant x no. of unemployed x 5 inhabitants/1 unemployed