Author: Paul Ploumis15 Oct 2014 Last updated at 07:56:34 GMT
SANTIAGO (Scrap Monster): The brand new copper mine of KGHM, the copper giant, opens in Chile, to which the CEO of the Polish copper producer stated that, the government of Chile increased the corporate tax from 20 percent to 27 percent, even in such a situation, the company is hopeful that, the new mine will reap profit, also not being affected by the decline in copper price.
The profit threshold set by the company is that, their Chile based copper mine, Sierra Gord is 6,300 dollars per tonne. In London Metal Exchange the price of copper has tumbled down to 6,600 dollars per tonne.
The decline in the price of copper is noted to be the decline in demand from the developing countries, along with that there are also other factors which contributed to the decline. The fact that, the labor charge per day has increased to about 50 dollars per hour and the cost of building, according to the new Chile code, which is a compulsory earthquake shielded buildings has also has cut down a good slack out of the company.
31 percent of stake in KGHM is held by the Polish government, and is also traded publicly on the Warsaw Stock Exchange. 55 percent of stake in the new mine, which is due to start production, is owned by KGHM, the remaining of the share is held by Sumitomo Metal Mining of Japan and also by the Sumitomo Corporation.