Canadian mining firm Lumina Copper may withdraw from Poland

Lumina Copper Corp may withdraw from a copper exploration project in Poland if unfavorable mineral tax regulations are passed in the Polish parliament, Polish business daily Dziennik Gazeta Prawna (DGP) reported.

“We are very serious about this investment. The question is if Poland is also interested,” Lyle Braate, President of Polish subsidiary of Lumina Copper Corp, Miedzi Copper, told DGP.

“We invested USD 30 mln in the program of geophysics and drilling research and this year we planed to spend additional USD 45 mln.,” Braaten added.

Miedzi Copper received a concession for prospecting but the decision was questioned by the Polish state owned giant KGHM, which also applied for the concession.

“The decision of the minister is totally incomprehensible to us,” the president of the KGHP, Herbert Wirth, said regarding the decision to grant a concession to Miedzi Cooper.

The fact that the subsidiary of a Canadian corporation got a concession in Poland was a surprise to some because Poland was considered to be KGHP turf. The fact that Stanisław Speczik, former head of KGHP and vice-minister of treasury, is a managing director of Miedzi Copper is adding more spice to the entire story as a suspicion is raised that he could have used his contacts to obtain the concession.

A few months ago Polish Prime Minister Donald Tusk stated that the matter of granting concession to Miedzi Copper would be investigated by the Internal Security Service (ABW).

Recently the ABW’s spokesperson, Maciej Karczyński, said that the report on this matter is ready and had been submitted to the “appropriate authorities,” DGP reported.