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KGHM Polska Miedź SAKGHM group may invest in projects abroad in future (CEO interview)
Listed copper group KGHM wants to complete the process of optimising its foreign assets, CEO Andrzej Szydlo told PAP Biznes in an interview. In his view, the group has the expertise and experience to invest abroad in non-ferrous metals in the future. According to the CEO, both mining and metallurgical projects could be considered.
"We have expertise in the field of non-ferrous metals and we want to expand in the future to other locations, both domestically and abroad. We are interested in everything related to copper, nickel, silver, gold and molybdenum," KGHM's CEO told PAP Biznes.
"By acquiring Quadra [in 2012 – PAP Biznes ed.], KGHM acquired a package of assets, some of which proved to be attractive and profitable, while others did not. Over the years, KGHM has learned to navigate the regulations of other countries, and now we can say that the organisation is really well prepared to potentially expand into locations abroad, on new projects," he added.
When asked about the group's area of interest abroad, Szydlo said that KGHM has the neccessary expertise and could invest in other parts of the world.
"We could invest in a deposit, enter a project as a shareholder or launch a project that is largely externally financed. We could also consider whether to look for synergies and build an ore enrichment plant or a copper smelter abroad," he said.
In his opinion, an opportunity for companies such as KGHM is the policy of US President Donald Trump, who wants to rebuild industry in the US, including the copper industry.
The CEO of KGHM pointed out that before any decision is made to get involved in new projects abroad, the process of optimising the group's foreign asset portfolio must be completed.
"There is no question of divesting our key assets, which are performing well," Szydlo stressed.
He announced that the key projects for KGHM are Sierra Gorda in Chile and the Robinson mine in the United States.
KGHM is also implementing the Victoria project in Canada, which involves the construction of a deep copper and nickel mine.
The KGHM Polska Miedz group is one of the ten largest copper producers in the world and the second largest silver producer. It has mining assets (copper ore mines and associated elements such as silver, molybdenum, nickel, gold and other metals) located in Poland, the USA, Chile and Canada. It also owns copper smelters in Poland.
The Sierra Gorda open-pit mine in Chile is a joint venture between KGHM International and the Australian company South32 in which KGHM International holds a 55 percent stake.
KGHM International owns, among others, the Robinson and Carlota mines in the USA, as well as the Victoria and Ajax projects in Canada.
pel/ ao/
