* KGHM confirms Reuters report of departure
* Krutin decision comes after clashes with Treasury Minister
* Leaving for "personal reasons"
(Adds treasury comment, updates share price reaction)
By Wojciech Zurawski and Agnieszka Barteczko
WARSAW, June 15 (Reuters) - Polish copper miner KGHM said on Monday that Chief Executive Miroslaw Krutin will not seek reappointment, after clashing with the government over strategy and dividend payout.
Confirming the departure, which company sources had told Reuters was going to happen, KGHM said in a statement that "the decision was dictated by personal reasons."
Krutin, whose term ends on Tuesday, has been at the helm since April 2008. He had pushed for acquisitions abroad and clashed with unions over salaries.
The state-controlled miner's supervisory board was meeting on Monday, with changes in the management board on its agenda. Media reports speculated Krutin could be sacked by the body.
"The supervisory board can now endow one of the management board members with the role of temporary chief executive," deputy treasury minister Zdzislaw Gawlik told Reuters, adding that "the process of choosing a new CEO is straightforward -- a contest."
The management of Europe's No. 2 copper producer yielded to government pressure earlier this month and proposed a 1.43 billion zlotys ($440.8 million) dividend after initially saying it would not hand back cash to shareholders.
However, the figure is near the bottom of the range sources had told Reuters was requested by the treasury as it seeks funds to plug a gaping budget hole.
"This was to be expected, considering the treasury's views and expectations," said Marcin Sojka, analyst at PKO BP brokerage. "Most analysts had a positive view of Krutin, who was the first KGHM chief executive who spoke in concrete terms."
Shares in KGHM, this year's best-performing Warsaw blue chip stock after tripling in value, were down 2.2 percent by 1413 GMT, compared to a 1.4 percent decline for Warsaw's main WIG20 index. ($1=3.244 Polish Zloty) (Additional reporting by Adrian Krajewski; Editing by Jon Loades-Carter)