18 January, 2016

Poland KGHM secures 1.3 billion USD investment for its Canadian Ajax mine

Second biggest European copper producer Polish KGHM plans significant investment in its Canadian copper-gold-silver Ajax mine and no other acquisitions in 2016 due to the metal markets crisis.
Poland’s state-run copper giant KGHM expects to inject $1.3 billion in capital expenditure into building a copper, gold and silver mine in Canada.
The figure is an initial estimate. KGHM, which is Europe’s second-biggest copper producer, expects annual copper production in the project to reach 58,000 tonnes and gold production to hit 125,000 ounces.Construction of the mine will take two-and-a-half years. It will be built near the town of Kamloops in British Columbia.
Reuters earlier reported that Europe’s No.2 copper producer, Poland’s KGHM, expects to book “fair” margins this year and does not plan any acquisitions until 2018, explained its chief executive Herbert Wirth.
“2016 will not be bad for us, we are still capable of generating fair margin, above costs,” he told daily Rzeczpospolita.

He added that low copper prices mean there are chances to buy miners cheaper, but since the metal rout hit its margins, the CEO did not expect any takeovers from Poland’s state-controlled KGHM until 2018.

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