Metals News
Poland Wants Higher Dividend From Copper Miner KGHM - Report
industry news
04:49PM
May 30,2012
Source:SMM

WARSAW, May 30, 2012 (Dow Jones) -- Poland's treasury ministry wants to see a higher dividend paid from Europe's second-largest copper producer KGHM Polska Miedz SA (KGH.WA), of which it is the single-largest shareholder, Polish daily Parkiet reports Wednesday, with citing sources.

KGHM Tuesday offered to pay 3.4 billion zlotys ($971 million), or PLN17 a share, from its 2011 profit, but the government, which holds 31.79% in the company, would like it to pay PLN4.8 billion, or PLN24 a share, the report.

Treasury Minister Mikolaj Budzanowski said this year he expected a higher dividend from KGHM than around PLN3 billion the management was ready to offer. The copper miner's dividend proposal was last year overruled by the state as it sought extra financing for the budget. Last year, KGHM paid a dividend of PLN14.9 a share from its 2010 profit, higher the board's proposal of PLN8.

Poland expects to receive a total of PLN8 billion this year from companies in which it holds shares.

The government this year introduced a copper mining tax, which it expects to raise PLN1.8 billion this year, mostly from KGHM. The copper miner earlier in 2012 finalized the takeover of Canadian copper producer Quadra FNX for C$2.87 billion, significantly depleting its cash pile.

 

KGHM
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