July 27, 2015 / 4:13 PM / 3 years ago

Poland's KGHM eyes return to local projects with govt tax proposal

GLOGOW, Poland, July 27 (Reuters) - Polish copper miner KGHM expects the government’s new mining tax proposal to allow them to return to some previously unprofitable projects in Poland, its chief executive said on Monday.

Earlier on Monday, Polish Prime Minister Ewa Kopacz flagged a possible revision to the country’s mining tax, with an option to suspend the levy until a miner achieves a return on investment from new mines.

“It is a very important proposal and the first such declaration relating to the changes we proposed to the current mining tax,” said Herbert Wirth, CEO of KGHM, Europe’s No.2 copper producer .

“This will allow us to return to these Polish mining projects, which, given the current tax scheme, were not profitable,” he told Reuters.

The mining tax, which weighs almost solely on state-controlled KGHM, has brought 5 billion zlotys ($1.35 billion) into state coffers since its implementation in 2012.

$1 = 3.7109 zlotys Reporting by Wojciech Zurawski; Writing by Adrian Krajewski; Editing by Pravin Char

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