* Expenditure related to mining and metallurgical assets, capital investments relating to Polish and foreign assets.
Table of contents
The KGHM Polska Miedź S.A. Group is a global, innovative organization involved in technologically advanced exploration, mining and metallurgical operations.
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KGHM has been mining and processing the earth’s precious natural resources for more than 60 years, providing the world with products that support sustainable development. Unwavering access to copper and precious metals is a key condition for major Western economies to achieve climate neutrality. KGHM is the only large-scale producer of copper from its own mining resources in the European Union.
While the Group’s products support the green transition of the global economy, KGHM is also steadily modifying its own business profile to achieve climate neutrality by 2050 and reduce total Scope 1 and 2 emissions by 30% by 2030 relative to 2020 (from 3.03 million t eCO2). The pursuit of sustainable development through the development of in-house low-carbon generation capacity (the construction and acquisition of photovoltaic and wind projects, as well as, in the long term, the use of small modular reactors), is one of the main pillars of the Group’s Strategy. For more information on decarbonizing the business model and building a portfolio of in-house energy assets, see Our impact on the environment.
Today, the KGHM Polska Miedź S.A. Group has a presence on four continents: in Europe, South America, North America and Asia. At the organization’s heart is Europe’s largest copper ore deposit located in south-western Poland. The geographic scope of the Group’s operations is described in Our assets section.
* Expenses on mining and metallurgical assets, capital investments pertaining to Polish and international assets.
The Company’s mission statement reflects the its goal “To always have copper” with its consistently pursued vision “To effectively use its resources to become a leader in sustainable development.”
Thanks to a wealth of experience, open-mindedness and continuous improvement of employees’ competence, the Company has built a unique culture of interaction and achieved a high position in the international arena. In 2022 it ranked eighth among global copper miners1 and second in silver production2. KGHM has a reputation as a reliable producer and a trusted business partner. It is also a responsible employer, valuing the commitment and cultural diversity of its employees around the world. It employs more than 34,000 people convinced that what they do is important.
1 KITCO 2023.
2 World Silver Survey 2023.
There were several significant anniversaries in 2022
The discovery on 23 March 1957 of one of the world’s largest deposits of copper ore, located in Lower Silesia, became a stable and strong foundation on which the modern enterprise KGHM Polska Miedź S.A. grew. The construction of each mining or processing plant, as well as smelter, was a huge technological challenge, requiring the solution of numerous geological, construction and social problems. The most outstanding engineers, geologists, physicists and designers were drawn to work at KGHM. It is thanks to their interaction – both within interdisciplinary teams and with local communities – that modern and environmentally friendly mines, processing plants and smelters were built.
The Mine-Smelter Emergency Rescue Division was established on 1 January 1997 to replace the District Mine Rescue Station. The tasks of the Mine-Smelter Emergency Rescue Division include providing the necessary assistance to all divisions of KGHM Polska Miedź S.A. in a wide range of activities: liquidation of the effects of fires, rock bursts and roof collapses, water intrusion into buildings, energy-mechanical and technical failures, as well as chemical and environmental failures on the surface and in underground workings. Rescuers are also responsible for safeguarding trouble-free production in the production line by performing a range of preventive work. KGHM’s rescuers are valued and awarded internationally. In 2022, the Mine-Smelter Emergency Rescue Division team took third place in the first aid competition at the International Rescue Squad Competition in the United States.
The Żelazny Most Tailings Storage Facility is an extremely important part of the copper production system. This is where waste from the mining and ore enrichment process has been managed for 45 years. It is the largest facility of its kind in Europe and one of the largest in the world, with an area of – together with the Southern Quarter – about 2,100 hectares. The volume of waste deposited reaches nearly 675 million cubic meters, the length of the dams exceeds 20 kilometres, and their maximum height is 78 meters. The Żelazny Most Tailings Storage Facility meets the EU’s stringent environmental requirements, and ensures the continued operation of the tailings collection system.
On 10 July 1997, the shares of KGHM Polska Miedź S.A. were floated on the WSE. The first step towards a listing of its shares on the Warsaw Stock Exchange was the transformation in 1991 of the state enterprise into the state-owned, joint stock company KGHM Polska Miedź S.A. 25 years after its market debut, the Company is one of the largest and most financially liquid companies on the Warsaw Stock Exchange. During this period, the value of KGHM’s shares increased many-fold.
The Company is included, among others, in the WIG140, WIG-ESG, WIG.MS-BAS, WIG30TR, WIG30, WIG20TR, WIG-mining, WIG-Poland, WIG20, WIG and CEEplus indexes.
The KGHM Group is involved in the following lines of business:
- mining of copper ores and non-ferrous metal ores,
- production of metals, among others copper, silver, molybdenum, nickel, gold, platinum, palladium,
- manufacturing of goods from copper and precious metals,
- recycling of non-ferrous metals,
- underground construction services,
- manufacturing of mining machinery and equipment,
- transportation services,
- research, analysis and design services,
- production of road construction aggregate,
- recovery of metals associated with copper ores.
Key product categories
Copper cathodes made from electrolytic copper with a minimum copper content of 99.99% are the basic product of KGHM Polska Miedź S.A. They meet the highest quality requirements and are registered as Grade „A” on the London Metal Exchange (LME), the Shanghai Futures Exchange (SHFE) and the International Energy Exchange in Shanghai (INE) under three brands: HMG-S, HMG-B and HML.
Copper cathodes are also the main product of the Carlota mine in the US, owned by KGHM INTERNATIONAL LTD Group and Franke (owned by the Group until April 2022).
The main customers for cathodes are manufacturers of wire rod, other rods, flat bars, pipes, sheets and strips.
Copper wire rod with a diameter of 8 mm is manufactured by the Contirod® continuous melting, casting and rolling process. Production is mainly carried out using proprietary cathodes, produced at KGHM Polska Miedź S.A. divisions. Wire rod is the second-largest copper product manufactured by KGHM in terms of volume. Cedynia Copper Wire Rod Plant produces wire rod in five quality grades to suit different customer needs. The product is mainly used in the cable, electromechanical and electrical engineering industries.
Electrolytic silver is produced mainly by KGHM Polska Miedź S.A. The product is in the form of bars (ingots, billets) and granules with a silver content of 99.99%. Silver bars weighing about 32 kg, have a certificate of registration with the New York Commodities Exchange COMEX and a Good Delivery certificate issued by the London Bullion Market Association. The silver granules are packaged in 25 kg or 500 kg bags. The silver is bought by, among others, financial institutions, the jewellery industry, the electronics and electrical industry, the photovoltaic industry, catalyst manufacturers, and coin, bar and medal producers.
Copper concentrate is a product of the Robinson mine in the US, part of the KGHM INTERNATIONAL LTD. Group, containing about 20% copper. It is also produced by the Sierra Gorda mine in Chile (copper content above 20%). In both of these concentrates, gold and silver are present as an additional product. Copper concentrates are sold for further processing as a commercial product.
One of Sierra Gorda’s main commercial products is molybdenum oxides. They are produced by processing the sulphide molybdenum concentrate (with a Mo content of about 48%) produced by the Sierra Gorda mine. Molybdenum is used in the aerospace industry.
Molybdenum concentrate is another commercial product (apart from copper concentrate) produced by the Robinson mine in the USA, part of the KGHM INTERNATIONAL LTD. Group. Production of molybdenum concentrate is derivative of the process of copper concentrate production.
Gold in the form of bars weighing approximately 0.5 kg, 1 kg, 4 kg, 6 kg and 12 kg, containing 99.99% gold, is produced by KGHM Polska Miedź S.A. The gold goes to the jewellery, minting, banking and electrical industries.
Ores containing copper, nickel and TPM are produced by the mines in the Sudbury Basin in Canada, part of the KGHM INTERNATIONAL LTD. Group. They are sold for further processing to one of the plants in the Copper Basin.
The Cedynia Copper Wire Rod Plant Division of KGHM Polska Miedź S.A. produces two types of rod using UPCAST® technology: Cu-OFE oxygen-free rod and CuAg(OF) oxygen-free, silver-bearing rod. Depending on customer need, the rod is produced in several diameters: 8 mm, 12.7 mm, 16 mm, 20 mm, 22 mm, 24 mm and 25 mm with possible silver content. This product is mainly used in the cable industry to produce thin wires, enamelled wires and fire-resistant cables, as well as cables for transmitting audio and video signals. Oxygen-free copper rod is also an ideal material for extrusion into flat profiles and sections using the Conform® process. In addition, silver-containing oxygen-free copper wire is used in the manufacture of trolleys and commutators.
Copper granulate is obtained from Cu ETP1 wire rod (99.90% Cu) and Cu OFE wire (99.99% Cu), and its main use is in the production of alloys and use in electroplating processes. Approximate dimensions of the grains produced by KGHM Polska Miedź S.A. are: 8 mm diameter, 12.7 mm diameter and 10-35 mm length.