December 21, 2011 / 5:25 PM / 6 years ago

Polish KGHM eyes takeovers with China Minmetals

WARSAW, Dec 21 (Reuters) - Europe's No.2 copper producer, KGHM, may make joint acquisitions with China Minmetals Corporation, KGHM Chief Executive Herbert Wirth said on Wednesday.

The Polish state-controlled miner is speeding up plans to make acquisitions outside its home country as it braces for an upcoming increase in mining tax in Poland, which is to yield 1.8 billion zlotys ($529 million) in 2012.

"For the time being we had discussions with China Minmetals in the field of joint acquisitions," Wirth said in an interview with broadcaster TVN CNBC. "We have ideas for that. It would be a third market (not Poland or China)."

China Minmetals has a history of co-operation with KGHM. Earlier this month, the Chinese company secured deliveries of copper cathodes from the Polish miner worth between $1.83 billion to $3.66 billion in 2012-2016.

Wirth told Reuters in an earlier interview the company was looking at five takeover projects on top of the recently agreed C$3 billion ($2.92 billion) purchase of Canadian rival Quadra FNX in an effort to meet ambitious output goals.

A stronger dollar as well as higher metal prices encouraged KGHM to raise its 2011 net profit forecast to a record 11.19 billion zlotys ($3.3 billion) on Wednesday. ($1 = 1.0285 Canadian dollars) ($1 = 3.4021 Polish zlotys) (Reporting by Adrian Krajewski; Editing by Elaine Hardcastle)

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