KGHM, HMS Bergbau team up to seek metals in Saxony

WARSAW, June 29 (Reuters) - Polish copper miner KGHM KGHM.WA and Germany's HMS Bergbau (HMUG.DE) will form a joint venture to search for and extract copper and other metals in Saxony, KGHM said on Monday.

KGHM, Europe's second largest copper miner, will own 75 percent of the new venture.

The Polish state-owned company had earmarked 9 billion zlotys ($2.8 billion) to boost its copper production and seek deposits outside Poland. But its plans may be hampered by a large dividend payout forced through by the government. (Reporting by Adrian Krajewski; Editing by David Holmes)