Increase in the cost of extracting copper

According to a new Cabinet ordinance, the cost of producing one tonne of copper, by KGHM, is to increase by 6$ to 10$. The copper and silver conglomerate has challenged the decision, claiming that the company's annual costs will increase by around zł.13 million. "The company is executing a long-term program of lowering production costs, and is trying to cope with the current and anticipated market demands. Part of these efforts will be destroyed by the decision to increase the extraction costs," reads an announcement addressed by KGHM to the Private Employers' Confederation (KPP). The extraction fees are to increase by over 20%. "The cost increase will not have a huge effect on the company's condition; however, it will definitely not help it," claimed a DM Millenium analyst, Michał Buczyński, who added that a much bigger problem for the company would be the employee wage increase that may transpire by virtue of the current conflict between the management and the labor unions. (Puls Biznesu, p. 10) A.K.