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Polish parliament’s lower house approves cut to copper tax

Metal News - Published on Tue, 16 Apr 2019

Image Source: Liberland Press reported that Polish lawmakers approved a 15% cut to the country’s copper tax on Friday, which would give state-run KGHM a bit more room to breathe, as the miner has been struggling with rising costs, falling copper prices, technical problems and higher-than-expected capital spending in the past few years. The motion was approved by 407 members of the parliament’s lower house, dominated by the ruling conservative Law and Justice (PiS) party, with only three abstentions and zero votes against it. It will now go to the senate.

The tax, introduced in 2012 and calculated using a formula based on local production volumes and prices, mostly affects KGHM, a major employer in southeast Poland, Europe's second-largest copper producer and a top silver miner. All of KGHM’s foreign mining projects, including those in Canada and the US, but excluding the ones in Chile, are currently under review.

The Polish producer, in the midst of an expansion of its flagship Sierra Gorda mine in northern Chile, has been criticized for the steep investment allocated to developing the asset (USD 5.2 billion and counting). So far, the operation has failed to achieve the daily ore processing level planned for its first stage and it’s far from becoming profitable.

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Posted By : Rabi Wangkhem on Tue, 16 Apr 2019
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