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KGHM to sell its smaller mines outside Poland

Image: KGHM

KGHM plans to sell its smaller mines outside Poland, including the Carlota copper mine in the United States.

“We decided that the smaller mines do not fit in our portfolio. It seems that now is an ideal time to sell,” Pawel Gruza, vice president in charge of foreign assets, said in a news conference.

The company plans to reinvest the proceeds in its domestic operations.

KGHM has located its facilities in Europe, North and South America. With over 38 million tonnes of copper ore resources worldwide, is one of the world’s biggest copper and silver producers.

The company has been mining in Poland since the 1950s and it is 32% owned by the government.

KGHM’s international expansion was questioned by the conservative Law and Justice (PiS) party, which took power in 2015.

In March, the company declared it has no plans to change its 55% stake in its Chilean Sierra Gorda mine, its flagship foreign asset, after its Japanese partner Sumitomo Metal Mining put its 45% stake on the block last October.

The company achieved the best operating and financial results in nearly a decade in Q1 2021. Copper production increased by 6.6% compared to Q1 2020, with 186 thousand tonnes.

The company’s consolidated adjusted EBITDA for the first quarter amounted to PLN 2,608 million (~$692 million).

(With files from Reuters)