KGHM to go to Congo to exploit cobalt reserves

Polish copper concern KGHM is planning to launch exploitation of cobalt in Congo in 2003. "I will consequently be aiming at exploitation of this reserve as well as trying to win the rights to two other reserves in the region," KGHM president Stanislaw Speczik told news program TVN 24. In his opinion, investments in Africa will amount to $5 million-$6 million, which guarantees that the investment will pay off. Yesterday Rzeczpospolita criticized some members of KGHM's current management, claiming that during their first tenure they signed agreements on copper extraction in Congo which were not profitable for the company. Rzeczpospolita claims that KGHM's losses due to the investment were $30 million - $100 million. The only beneficiary was the Colmet company which acted as intermediary in the investment, earning around $10 million. (Puls Biznesu, p. 3) A.Z.