KGHM to look for copper deposits in Laos, Peru and Chile

Friday, Oct 31, 2008

Poland’s copper giant KGHM is launching another attempt to expand abroad, searching for deposits in Laos, Peru and Chile. “We are looking for very rich deposits. These can be found in Laos. Currently we are holding talks with the Laotian ministry of mining over gaining a concession to explore the county’s deposits,” says Herbert Wirth, the KGHM vice chairman, quoted in Puls Biznesu.

The Polish conglomerate is also keeping a sharp eye on the very rich copper deposits in Chile and Peru, which could be exploited in opencast mines. According to experts, up to 1.3 billon tonnes of copper ore could be find there. KGHM plans to visit these countries and launch initial negotiations concerning the purchase of a part of these deposits and are looking for partners in the project.

KGHM’s ventures abroad have not always been successful, however. In the late 1990s the company lost some 40 million dollars when it purchased a license for over 600,000 tonnes of ore in the Democratic Republic of Congo and sort compensation from a consortium made up of the British company Colmet International and the Congolese Sodomico after a processing plant failed to be built. Critics say that the venture’s failure was due to, among other factors, a lack of experience in foreign investments.

The search for new opportunities abroad for the copper giant is vital as it has been estimated that present deposits in its possession will only last until around 2015.