KGHM eyes Kazakhstan to boost output
LUBIN, Poland, July 17 (Reuters) – Polish group KGHM , Europe’s No.2 copper producer, is exploring deposits in Kazakhstan, its chief executive said, adding that the resource-rich central Asian country has became more attractive since signing a co-operation deal with Germany.
KGHM has put off foreign acquisitions until 2014 to focus on developing recent Canadian purchase Quadra FNX, the owner of one of the world’s largest copper projects – Sierra Gorda in Chile – and other assets there and in Canada and the United States.
Wirth said on Tuesday KGHM was ready for any opportunity as the state-controlled miner needed acquisitions to raise its annual copper output to 700,000 tonnes by 2018.
Last year, KGHM produced 446,000 tonnes of copper, with Quadra adding another 100,000 tonnes.
“There are a lot of interesting markets to explore and this is how we view Kazakhstan, for example,” Herbert Wirth told reporters.
“The agreement signed recently by the German chancellor and Kazakhstan’s president concerning the development of mining on that market is a signal that investments in Kazakhstan can be stable.”
In February, Germany and Kazakhstan signed a co-operation deal designed to give German firms greater access to raw materials in exchange for technology and know-how. (Reporting by Wojciech Zurawski; Writing by Maciej Onoszko; Editing by Dan Lalor)