Europe's second-largest copper producer also posted its best quarterly results in the last three years, with revenue rising by PLN 1.2 billion (about $312 million).
KGHM Mining News
If rubber-stamped by the senate, the move 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 years.
KGHM's foreign assets have struggled with rising costs, falling copper prices, technical problems and higher-than-expected capital spending.
The union threatened strike action in mid-March.
The union intends to vote on a new contract proposal by Thursday and deliver their decision to management on Friday.
The company had until the end of Tuesday to request government mediation to help reach a deal with the union of 520 workers.
A union at the Sierra Gorda copper mine, controlled by Polish mining company KGHM, could go on strike this week after rejecting the latest offer in contract negotiations.
The body, which looks into the way the Polish state operates and how it spends public funds, says the company has spent more than $5.2B in three years on the underperforming Sierra Gorda mine.
Miner missing in Rudna mine is alive!
Originally 14 were missing, but some were rescued within several hours of the tremor.
"We refer to lower end of copper price range forecast by analysts and we assume an average copper price at $6,100-$6,300 per tonne."
KGHM will deliver updated strategy by year-end and it has no plans to sell foreign assets.
Expansion and upgrades would extend the mine’s life by 21 years.
The company also said it plans to reduce investment in oversees assets and focus on domestic operations.
Roberto Venegasa, an employee of equipment supply firm Finning, died during routine maintenance work at the mine, the company said.
Net profit for the first three months of the year stood at 439 million zlotys ($121.08 million), compared with the 453 million zlotys expected by analysts.
The CEO also forecast that the copper price will exceed $7,000 by the end of this year, as analysts at Bank of China expect.
KGHM also said in a statement that silver sales fell in the same quarter by 16 percent to 212.6 tonnes.
The miner expects daily copper ore output at its Chilean mine Sierra Gorda to increase by 18% next year from current levels.
The state-run firm also said that this year's output of electrolytic copper from its own concentrates will be 35,000 tonnes than the planned 401,000 tonnes due to an accident at its smelter.
"I think that the third-quarter results will confirm that the full-year EBITDA will be higher than last year," says KGHM CEO Radoslaw Domagalski-Labedzki
The Polish company, Europe's second-largest copper producer, said that given current macro conditions the plan had lost sense.
A prospective copper-gold mine in south-central British Columbia has been handed a setback by local First Nations who oppose the project.
The accident happened at the Polkowice-Sieroszowice mine when part of a ceiling collapsed.
Shares in Europe's second-largest copper producer jumped as much as 4.7% on Monday after posting earnings at overseas units that helped the Polish miner beat analysts estimates for the first-quarter profit.