March 2, 2012 / 9:38 AM / 6 years ago

UPDATE 1-Polish parliament approves tax that will hit KGHM

* Polish parliament approves mining tax,

* Tax to yield PLN 1.8 bln in 2012

* KGHM to bear the brunt of levy on copper, silver

WARSAW, March 2 (Reuters) - The Polish parliament approved a mining tax on Friday that is expected to bring 1.8 billion zlotys ($585 million) into state coffers this year, mainly at the expense of Europe’s No.2 copper producer KGHM .

Next year, the levy, linked to the average monthly prices of copper and silver, is expected to yield 2.2 billion zlotys.

Proposals for the tax put forward by Prime Minister Donald Tusk in November chopped about one-third off KGHM’s market value last year, which reported record earnings of 11.3 billion in 2011 thanks to telecom asset sales and high copper prices.

The levy and a lack of further asset sales are seen capping this year’s profits at the state-controlled miner, with its C$3 billion purchase of Canadian rival Quadra FNX only partly balancing the hit.

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