KGHM considering branching out into alternative fuel; plan being drawn up

KGHM Metale, a copper concern which is part of the KGHM group, is considerin g entering the biofuel market. A working group has been created to investiga te an investment idea. The production of biofuel is part of an idea to diver sify KGHM's activities. The biofuel would be made from rapeseed oil at the A qua Conrad plant, a company that is being liquidated. The biofuel would be u sed by KGHM mines and sold on the open market. Market analysts, however, do not like KGHM's idea. Competition on the biofuel market is very fierce and i f KGHM enters this sector it could mislead investors as it would make establ ishing the price of company shares very difficult. "To fully and objectively evaluate such an investment we have to wait and see the business plan," said Alfred Adamiec, an investment advisor at PBK Asset Management. For now KGHM has not revealed the price of a license to produce biofuel and likely start- up costs. (Puls Biznesu, pp. 1, 6) A.D.