Minister wants premium payouts

The Polish government, the biggest shareholder in copper group KGHM, intends to demand a large dividend payout this year, according to Treasury Minister Andrzej Mikosz.

Mikosz said: "I will carry out an aggressive dividend policy towards KGHM. I believe that KGHM will be able to give us a large payout." The group plans a zł.2 billion profit this year.

Mikosz declared that he also plans to reduce costs at the company. "I don't like the situation in this company - the costs of production of copper are too high," he said.

He also elaborated on his policy towards the merger of the country's two top fuel groups, PKN Orlen and Lotos, saying that he would not advocate it at the moment. "Presently, I see no reason to make a decision about merging these two companies," he said.

Mikosz revealed that he would also like to see large dividends for the state from PKN, but said that he realized the company needed capital. "I understand the company's cash needs as it seeks to expand," he said. (Reuters)