KGHM to sell 2 small mines in Chile and US
The Management Board of KGHM Polska Miedź sent out informational materials, the so-called teasers, to companies potentially interested in acquiring foreign mining assets belonging to KGHM International – the Franke mine and the Carlota mine – KGHM reported in its quarterly report.
For a long time, foreign investments of KGHM did not bring great benefits to the Polish company and burdened the results of the entire group more than they supported. The management has now decided to get rid of two mines: in the USA and Chile. The growing copper prices allowed for the highest profit of the KGHM group since the second quarter of 2012.
KGHM to sell its smaller mines outside Poland
The company achieved the best operating and financial results in nearly a decade in Q1 2021. (Credit: 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.
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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.
KGHM looking to sell two US copper assets
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Poland’s state-run mining company, KGHM, plans to sell its Robinson and Carlota copper mines in the United States and reinvest the proceeds in its domestic operations, two banking sources told Reuters.
KGHM, one of Europe’s biggest copper and silver producers, became the owner of the US mines in 2012, when it bought rival Canadian Quadra FNX.
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Copper, a highly efficient conductor of electricity and heat, is in high demand for use in renewable energy systems to generate power and in electric vehicles. New deposits are rare and increasingly difficult to recover.