Sasin: KGHM will continue to grow in Chile

Deputy Prime Minister and Minister of State Assets Jacek Sasin is visiting Chile. One of the officials he held talks with was the country’s Finance Minister Mario Marcelo, with whom he discussed the upper limit on the taxation of mines such as Sierra Gorda, in which KGHM has a 55 percent stake. Sasin also spoke with Mining Minister Marcela Hernández Pérez. One of the topics was KGHM investing in the extraction of lithium, which is an important raw material in the context of the energy transition.

“During the visit and talks in Chile, we gained a lot; we have assurances that KGHM will be able to continue to dynamically develop in this country,” Deputy Prime Minister Jacek Sasin said on Tuesday.

Earlier, the Minister said that he had received assurances from the Minister of Finance of Chile that Polish demands will be taken into account; an upper limit on taxation will be introduced, especially for companies such as the Sierra Gorda mine.

“It was three days of fruitful talks. We gained a lot. As a result of a number of meetings with representatives of the Chilean government, we have assurances that KGHM will be able to continue to develop rapidly in Chile. We want to be more present in the region. Sierra Gorda is a future-proof investment ,” Sasin tweeted on Tuesday evening.

The Minister recalled that the original bill provided for a radical increase to 3 percent of the mining tax on the value of produced copper (i.e. revenue, excluding company costs). Experts said it could have a negative impact on the entire mining industry.

“Like KGHM in Poland, the Sierra Gorda mine supports employees and residents of the region. Firefighters from the communities of Antofagasta, Sierra Gorda and Calama can count on equipment, donations and training. Since its inception, the company has implemented numerous health, safety and sports projects for local communities,” KGHM has reported. “Another important social project is Sierra Gorda’s Community Trainee program, where residents of Sierra Gorda with no experience gain training to work in mining and, in many cases, employment in the local mine. In 2023 its fourth edition has begun,” the company said.

Polish Press Agency / Jacek Perzyński/KGHM