Nothing will affect copper mining for KGHM

Neither the copper price nor the tax increase will affect the development of a copper mine in Chile, said Herbert Wirth, chief executive of KGHM. A new copper mine for copper giant KGHM has been inaugurated in Chile.

During the opening ceremony of the Sierra Gord mine (Sierra Gord), the company clarified that “the Chilean government has increased the corporate tax from 20 percent to 27 percent, but even in this situation, there is confidence that the new mine will reap profits, will also not be affected and the decline in the price of copper ”.

31 percent of KGHM shares are owned by the Polish government, which are publicly traded on the Warsaw Stock Exchange. KGHM owns 55 percent of the new mine, which starts production, with the remainder held by Japanese companies Sumitomo Metal Mining and Sumitomo Corporation.

Recently, there has been a decline in copper prices, which is due to weakening demand from developing countries, however, there are other factors that contributed to the decline. Perhaps in developing countries not everyone can afford yet the best heating radiators made mainly of copper, but it is also important that the payment has increased labor per day and the cost of construction. Since, in accordance with the new Chilean code, it is mandatory to shield the building from an earthquake, which significantly increases the costs for the company.

However, the profit threshold set by the company allows the development of the mine to continue. That threshold for Chile's Sierra Gord copper mine is $ 6,300 per tonne. And on the London Metal Exchange, the price of copper fell to $ 6,600 per ton.