Europe's second largest copper producer, KGHM is on an acquisition drive every two to three years according to its CEO Herbert Wirth. The Poland based company is on the move to transform itself into becoming the top producer of the metal worldwide.
The first of its many promised acquisition was the Canadian firm Quadra FNX purchased for Can $3 billion. The company then bought mines currently in operation in Canada, Chile and the United States. The current crown jewels is the Sierra Gorda development project in the Atacama desert of Chile.
Sierra Gorda is one of the largest copper projects with an annual production equal to 40% of the current output of the company. The project is joint venture with Sumitomo and is worth US $3.9 billion. Copper is expected to be produced by the second quarter of 2014.
According to Wirth, "Now we are global mining company we must every two or three years have acquisitions." He highlighted that the company was studying several junior mining companies as options for acquisitions. The goal is to become the world's top copper producer by 2020.
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