imageWARSAW: Europe's No.2 copper producer, Poland's KGHM, is seeking proposals from banks for a possible 5-year loan worth around $2.5 billion, a source close to the company said on Thursday.

"KGHM is sounding out banks for their offers for a $2.5-billion 5-year loan," the source told Reuters. "Banks have until the end of June to place their offers and KGHM will make its decision then."

KGHM would like Poland's state-controlled lender PKO BP to be among the leaders of the possible loan consortium, the source said. The company's chief financial officer was not immediately available for comment.

KGHM, which is state-controlled and has almost no debt, earlier this year said it would tap the market for debt financing to pay for planned mining projects.

The miner, which is also the world's largest silver producer, is about to launch production at its Chilean copper project in Sierra Gorda and is on the look-out for possible projects to buy either in Poland or abroad.

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