UPDATE 1-Polish miner KGHM to step up overseas expansion

Mon Feb 11, 2013 10:15am EST
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* Seeks $20 bln market capitalisation by end-2020
    * Plans $6.5 bln overseas capex to 2018

    WARSAW, Feb 11 (Reuters) - Polish copper miner KGHM 
plans to spend 20 billion zlotys ($6.5 billion) on its foreign
assets by 2018 to almost double its market value by the end of
the decade, the company said on Monday.
    The $12.2 billion state-controlled company, Europe's
second-biggest copper producer, started its overseas expansion
plan last year with the C$3 billion ($3 billion) purchase of
Canada's Quadra FNX, now named KGHM International. 
    The Canadian acquisition, comprising the Chilean Sierra
Gorda copper project and other assets in Chile, Canada and the
United States, adds to the company's other Canadian operation in
the Afton-Ajax project with Abacus Mining.
    "We're one third of the way on our road to becoming a fully
global company, valued at about $20 billion," KGHM Chief
Executive Herbert Wirth said, adding that it wants to achieve
this by the end of 2020.
    "Our first milestone will be the 2014 launch of our largest
mine (in Sierra Gorda, partnered by Sumitomo Metal Mining
 ). The second will be the Victoria project in Canada in
2016 and the third is Afton-Ajax in British Columbia in the same
    KGHM, which is also the world's No.1 silver producer, is
targeting annual copper output of 700,000 tonnes by 2018.
    The company said on Monday that it expects copper production
from its Polish mines to total 562,000 tonnes this year.
    A report by consultancy Micon said that KGHM's Polish mining
reserves stand at nearly 1.2 billion tonnes, comprising 18.6
million tonnes of copper and 1.8 billion ounces of silver -
sufficient to sustain operations for at least 30 years.
    "1.2 billion tonnes of mineral reserves place KGHM in the
world's top five players," Micon analyst Christopher Lattanzi
told a news conference in Warsaw.