Jordan Pandoff, president and CEO of Lumina Metals, a Canadian mining company that has been investing in copper and silver projects in Poland for over a dozen years, said in an interview with the WNP website that Poland has the most critical raw materials in the entire European Union.
During the European Economic Congress, Pandoff also stated that Poland is one of the world leaders when it comes to copper resources. He added that it is also a leader in silver.
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Is Poland losing a chance? Taxes are an obstacle
This is a great opportunity for Poland in the context of growing global demand for these raw materials. However, as WNP points out, this potential does not translate into new investments. There are several reasons for this phenomenon. The first are taxes. Pandoff, quoted by the website, explained that “the total tax burden [chodzi o podatek od miedzi i srebra]together with income tax, reaches approximately 70 percent, which significantly complicates investment decisions.
Pandoff pointed to the second reason market cyclicality. He explained that in 2015-2019, mining investments were limited around the world due to low raw material prices. The situation began to turn around after the coronavirus pandemic. The expert emphasizes that we are currently at the beginning of a new cycle, which means that demand will become so strong that it will attract significant capital.
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Pandoff also emphasized that the problem today is not access to financing, but the lack of quality copper projects available to investors.
Investors praise Poland's potential
The president of Lumina Metals, which is currently conducting talks with investors on several continents, emphasizes that Poland is perceived as a “stable jurisdiction with good infrastructure”.
He adds that currently critical raw materials are becoming one of the priorities in world politics. According to Pandoff, the biggest barrier for this type of projects is time. They require many years of work. Lumina plans to make its investment in Poland in the Nowa Sól area. It is to be one of the largest projects of this type in the entire country. Construction could start within four or five years.
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The investor emphasizes that Poland compares favorably to Europe an attractive place for mining. He adds that in other countries the problem is the lack of social acceptance, while in Poland there is a mining tradition. Moreover, Pandoff says, Polish deposits have a high silver content and contain other valuable metals, which makes them attractive.
— Poland has resources, competences and industrial base. If some elements, such as the tax system, are improved, the prospects for the development of new mines are very positive, says Pandoff, quoted by WNP.
