=DJ UPDATE: KGHM Sees 2010 Capital Investment At PLN1.6 Billion

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   By Marek Strzelecki and Marynia Kruk
   Of DOW JONES NEWSWIRES

WARSAW (Dow Jones)--Polish copper producer KGHM Polska Miedz SA (KGH.WA) plans to spend 1.6 billion zlotys ($542.4 million) on capital investment in 2010, with a view to buying assets the state plans to privatize, Chief Executive Herbert Wirth said Monday.

"An example could be the basalt mine in Zlotoryja, which our subsidiary Ecoren could acquire," he said. The money would be spent on top of PLN1.6 billion already earmarked for copper deposit acquisitions, Wirth said.

He said the company would like to spend the PLN1.6 billion earmarked for deposit acquisitions on project in a late stage of exploration.

If KGHM was to acquire a copper ore field this year, it could start mining in two or three years and this output could account for some 10% of production, Wirth said.

Wirth also said KGHM would make a decision on the level of its dividend payout from 2009 net profit in April, though the payout would be in line with company policy and should take planned investments into account.

-By Marek Strzelecki and Marynia Kruk, Dow Jones Newswires; +48 22 447-2431; marynia.kruk@dowjones.com

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(END) Dow Jones Newswires

March 01, 2010 06:59 ET (11:59 GMT)

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