MINEX Forum

Tag: Ministry of Finance

  • KGHM Polska Miedź SA, Ministry of Finance, and Ministry of State Assets Discuss Changes to Copper Tax Formula

    KGHM Polska Miedź SA, Ministry of Finance, and Ministry of State Assets Discuss Changes to Copper Tax Formula

    In a significant development for the Polish mining industry and the country’s economy, KGHM Polska Miedź SA, the Ministry of Finance, and the Ministry of State Assets held talks on January 27, 2025, in Warsaw to discuss proposed changes to the formula of the so-called copper tax and the long-term development of KGHM’s domestic assets through strategic investments in Poland.

    As a key entity for the Polish economy and the largest producer of copper in Europe, KGHM Polska Miedź SA is responsible for almost 50% of the production of mined copper in the European Union, making it a strategic raw material for the European Union. With a strong focus on sustainable growth and responsible mining practices, KGHM continues to strengthen its position as a leading global copper producer.

    The meeting was attended by KGHM Polska Miedź SA’s Management Board, Minister of Finance Andrzej Domański, Deputy Minister Jarosław Neneman, and Deputy Minister of State Assets Robert Kropiwnicki. The primary objective of the meeting was to address the proposed changes to the formula of the copper tax and the possibilities of enhancing KGHM’s long-term development in Poland with strategic investments.

    The copper tax, introduced in 2012, is a significant factor in the profitability of KGHM’s operations, and the proposed changes may impact the company’s financial health. The talks aim to strike a balance between the government’s fiscal objectives and KGHM’s need for a sustainable business environment to ensure the company’s continued growth and success.

    Further details regarding the outcomes of the meeting and the proposed changes to the copper tax have not been disclosed at this time. However, both KGHM and the respective governmental bodies remain committed to fostering a positive and mutually beneficial relationship that supports Poland’s economic growth and strengthens its strategic position within the European Union.

  • Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Ministry of Finance is planning to introduce export duties on major types of mineral resources in an effort to reduce the country’s growing budget deficit. According to a report by Bloomberg, the government is expected to make a decision on this initiative by the end of August this year.

    The proposed export taxes would target a range of domestic products, including coal, copper and iron ores, metal concentrates, ferroalloys, sulfur, and others. While the final list of taxable products has yet to be determined, it is expected to include those resources that would generate the most revenue for the state.

    Local media will be provided with the official list only after a consensus is reached between the National Chamber of Entrepreneurs “Atameken” and government bodies. At that point, the government will also finalize the exact rates for the export duties.

    This initiative by the Ministry of Finance is not entirely new. Discussions about imposing such duties began a year ago, with the project initially justified as a means to stimulate the domestic processing of ferrous metals. Currently, only oil and alloy exporters are subject to such payments.

    Kazakhstan’s budget is in urgent need of additional revenue. By the end of the first quarter of 2024, the deficit had reached 1 trillion tenge (a 24.2% increase year-on-year). In June, former Prime Minister Alikhan Smailov described the deficit as chronic and criticized the inefficient use of public funds.