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{{Short description|Polish multinational mining corporation}}
{{lead rewrite|date=July 2010}}
{{Infobox company {{Infobox company
| company_name = KGHM Polska Miedź S.A. | name = KGHM Polska Miedź S.A.
| logo = kghm nowe logo.svg
| company_logo = ]
| logo_size = 230px
| company_type = ] (]: )
| type = ]
| foundation = 1961
| traded_as = {{Unbulleted list|{{WSE|KGH}}|] component}}
| location = ], Poland
| ISIN = {{ISIN|sl=n|pl=y|PLKGHM000017}}
| area_served = Worldwide
| foundation = {{start date and age|1961}}
| key_people = Herbert Wirth, (]
| industry = ] | location = ], Poland
| area_served = Worldwide
| products = gold, silver, copper
| key_people = Marcin Chludziński<br>{{small|President and CEO}}<br>Andrzej Kisielewicz<br>{{small|Chairman of the Supervisory Board}}
| revenue = {{increase}} ]3.1 million
| industry = ]s, ], ]
| net_income = {{increase}} ]0.6 million
| products = ], ], ], ], ], ], ], ], ], ], ], ]
| operating_income = {{profit}} ]0.6 million
| revenue = {{increase}} ]3.9 billion (2019)<ref name="one">{{cite web|url=https://kghm.com/sites/kghm2014/files/document-attachments/consolidated_quarterly_report_kghm_group_qsr_3_2019.pdf|title=Consolidated quarterly report QSr 3 / 2019|website=Kghm.com |access-date=2020-02-07}}</ref>
| assets = {{increase}} ]497.4 million
| net_income = {{increase}} ] 135 million (2019)<ref name="one"/>
| num_employees = 28,884 <small>(2009)</small>
| assets = ] 9.2 billion (2019)<ref name="one"/>
| homepage =
| equity = ] 4.6 billion (2019)<ref name="one"/>
| operating_income = {{decrease}} ]254 million (2019)<ref name="one" />
| num_employees = 33,935 (2017)<ref name="Company Report 2017">{{cite web|url=https://kghm.com/sites/kghm2014/files/kghm-raport-zintegrowany-2017-en.pdf |title=Annual report 2017 |website=Kghm.com |access-date=2019-02-15}}</ref>
| subsid = KGHM International Ltd (100%)<ref name="Companies of the KGHM Group">{{cite web|url=http://www.kghm.com/en/about-us/capital-group |title=Capital Group &#124; KGHM Corporate Website |website=Kghm.com |date=28 July 2015 |access-date=2017-07-14}}</ref><br>Sierra Gorda SCM (55%)<ref name="Owners">{{cite web|url=http://www.sgscm.cl/02propiedad_eng.html |title=Sierra Gorda SCM - Owners |website=Sgscm.cl |access-date=2017-07-14}}</ref>
| homepage =
}} }}
]]]
'''KGHM Polska Miedź''' is one of the largest producers of ] and ] in the world. The ] & ] company is based in ] in ]. KGHM Polska Miedź S.A. owns shares in 33 entities, operating in various production and service-related areas.
'''KGHM Polska Miedź S.A.''' ('''K'''ombinat '''G'''órniczo-'''H'''utniczy '''M'''iedzi), commonly known as '''KGHM''' (<small>Polish pronunciation</small>: {{IPAc-pl|'|k|a|g|j|e|ch|a|e|m}}), is a Polish ] mining corporation headquartered in ], ], Poland.<ref>{{Cite web |title=KGHM POLSKA MIEDŹ (KRS 0000023302) |url=https://podmioty.pl/company/0000023302 |access-date=2024-05-23 |website=podmioty.pl}}</ref> Founded in 1961 as a state enterprise, the company is considered a major global producer of ] and ].<ref>{{Cite web |url=https://www.kitco.com/news/2021-08-17/Polish-mining-giant-KGHM-reports-best-results-in-decades-for-H1-2021.html |title=Polish mining giant KGHM reports 'best results in decades' for H1 2021 |website=kitco.com |author=Vladimir Basov |date=17 August 2021 |access-date=10 April 2023}}</ref> Since 1997, it has been listed on the ] (WSE).<ref name="KGHM (KGH) Stock card">{{cite web|url=https://www.gpw.pl/karta_spolki_en/PLKGHM000017/ |title=Stock card - KGHM &#124; KGH &#124; PLKGHM000017 |website=GPW.pl |access-date=2017-07-14}}</ref><ref name="KGHM Statute">{{cite web|url=https://www.gpw.pl/karta_spolki_en/?gls_id=214&ph_tresc_glowna_start=statut |title=Statut KGHM Polska Miedź Spółka Akcyjna z siedzibą w Lubinie |website=Gpw.pl |access-date=2017-07-14}}</ref> The company is also a component of the ] stock market index.


Currently, KGHM employs around 34,000 people worldwide and operates 9 open-pit and underground mines in Poland, Canada, the United States and Chile. KGHM produces key global resources including ], ], ], ], ], ], ], ], ], ], ], ] group metals.
KGHM is one of the largest Polish exporters, the largest employer in Lower Silesia, and a significant part of the WIG20 index – winner of a prestigious statuette for achievements in 2005. The Company was awarded the Bull and Bear prize by the Market Paper "Parkiet" in the category of best investment in a WIG20 company and the Pearl of the Polish Market prize in the raw materials and energy sector.


== History ==
The Company generates enormous profits, and holds a strategic interest for the Polish economy. The year 2007 saw record results in the production of electrolytic copper – 532,974 t – and of metallic silver – 1,215 t, and above all a record profit – nearly PLN 3.8 billion and a future promising steady growth and an increase in the value of the Company.


=== Early history and foundation ===
==See also==
In 1951, the construction of the Copper Smelter in ] was commenced to smelt copper from the ore mined in the so-called old Lower Silesian copper basin ("Lena" and "Konrad" mines).<ref>{{cite journal |last1=Ostręga |first1=Anna |last2=Teodorski |first2=Dariusz |last3=Becker |first3=Roman |date=2012 |title=REGENERATION OF POST-INDUSTRIAL FACILITIES IN THE LEGNICA-GŁOGÓW COPPER MINING DISTRICT ILLUSTRATED WITH AN EXAMPLE OF "OBORA" FILLING SAND MINE |url=https://portal.issn.org/resource/issn/2353-3633 |journal=AGH Journal of Mining and Geoengineering |volume=36 |issue=2 |pages=259 |doi= |access-date=10 April 2023}}</ref>
* ]


In 1957, ] discovered copper ore deposits near ] and ] ("Sieroszowice" field).<ref>{{Cite web |url=https://www.pgi.gov.pl/en/psg-1/psg-2/informacja-i-szkolenia/wiadomosci-surowcowe/10932-how-copper-and-silver-deposits-were-discovered-in-poland.html |title=How copper and silver deposits were discovered in Poland |website=pgi.gov.pl |access-date=10 April 2023}}</ref>
==External links==
*
* (2007)


On December 28, 1959 by the decision of the Ministry of Heavy Industry, Zakłady Górnicze "Lubin" was established as a state owned company and in 1961, transformed into Kombinat Górniczo-Hutniczy Miedzi (KGHM), which was supposed to deal with the extraction and processing of copper extracted from the newly discovered fields.<ref>{{Cite web |url=https://kghm.com/en/about-us/history |title=History |website=kghm.com |date=26 August 2014 |access-date=10 April 2023}}</ref> At the same time, KGHM incorporated two copper mines in the area of the piedmont of the ] from the old copper-bearing basin (closed in 1973 - "Lena" and in 2000 - "Konrad").<ref>{{Cite web |url=https://polska-org.pl/563866,Wilkow,Zaklady_Gornicze_Lena_nieistniejace.html |language=pl |title=Zakłady Górnicze Lena (nieistniejące) |website=polska-org.pl |access-date=10 April 2023}}</ref><ref>{{Cite web |url=https://polska-org.pl/558315,Iwiny,Zaklady_Gornicze_Konrad_dawne.html |language=pl |title=Zakłady górnicze Konrad (dawne) |website=polska-org.pl |access-date=10 April 2023}}</ref>

=== Expansion ===
In the years 1962-1975, Tadeusz Zastawnik was the director of KGHM (in the years 1952-1957 he was a Member of Parliament, and in the mid-1950s the director of the Union of Mining and Metallurgy of Non-Ferrous Metals). In 1968, the construction of the "Lubin" and "Polkowice" mines and the modernization of the Legnica smelter ended. The construction of the Głogów smelter started, and at the end of the 1960s, geologists discovered new, even richer copper deposits in ].

In January 1996, the "Polkowice-Sieroszowice" Division was established, which was established as the result of the merger "Polkowice" and "Sieroszowice" mines.<ref>{{Cite web |url=https://kghm.com/en/about-us/history |title=History |website=kghm.com |date=26 August 2014 |access-date=10 April 2023}}</ref>

From the day the state enterprise was established, until August 9, 1976, the Minister of Heavy Industry, and then the Minister of Metallurgy (the office was transformed into the office of the Minister of Metallurgy and Machine Industry) supervised operations.

=== Transformation ===
On September 9, 1991, the state-owned enterprise Kombinat Górniczo-Hutniczy Miedzi in Lubin was transformed into a sole-shareholder company of the State Treasury - KGHM Polska Miedź SA. On September 12, 1991, the company was entered in the commercial register kept by the District Court in ] and on the same day, the court removed the former entity from the register of state-owned enterprises.<ref>{{Cite web |url=https://kghm.com/en/about-us/history |title=History |website=kghm.com |date=26 August 2014 |access-date=10 April 2023}}</ref>

=== Integration ===
] Copper Mine in ], Poland]]
On December 6, 2011, the management boards of KGHM Polska Miedź SA and ] signed an agreement on the takeover of the Canadian enterprise by KGHM. On February 20, 2012, the general meeting of shareholders of Quadra FNX Mining Ltd. accepted the transaction of a friendly takeover of 100% of shares in the company Quadra FNX by KGHM Polska Miedź SA, and on March 5, 2012, the above transaction was closed.<ref>{{Cite web |url=https://www.mining.com/quadra-fnx-securityholders-approve-plan-of-arrangement-with-kghm/ |title=Quadra FNX Securityholders Approve Plan of Arrangement With KGHM |website=mining.com |date=20 February 2012 |access-date=10 April 2023}}</ref><ref>{{Cite web |url=https://kghm.com/en/purchase-100-quadra-fnx-shares |title=Purchase of 100% of Quadra FNX shares |website=kghm.com |date=5 March 2012 |access-date=10 April 2023}}</ref>

Since then, Quadra FNX has been operating under the new name of KGHM International Ltd. The transaction value amounted to approximately $2.9 billion.<ref>{{Cite web |url=https://www.reuters.com/article/us-quadra-kghm-idUSTRE7B515O20111206 |title=Poland's KGHM to buy Quadra FNX for C$3 billion |website=reuters.com |author=Euan Rocha and Adrian Krajewski |date=6 December 2011 |access-date=10 April 2023}}</ref> The purchase was financed with funds of KGHM After the acquisition, the size of the combined resource base is 37.4 million tons of copper (fourth largest deposit in the world). The combined annual copper production was then 526 thousand tonnes. One of the key assets of KGHM International Ltd. is the Sierra Gorda field. The deposit is located in Chile and contains 1.3 billion tons of ore rich in copper, gold and molybdenum.<ref>{{Cite web |url=https://media.kghm.com/en/news-and-press-releases/node_1047 |title=KGHM begins process of acquiring Canadian mining company |website=media.kghm.com |date=5 December 2011 |access-date=10 April 2023}}</ref>

=== Recent developments ===
In May 2015, a new production line was launched at the ] plant in ].<ref>{{Cite web |url=https://dziennikzachodni.pl/nitroerg-w-bieruniu-ma-150-lat-to-osma-w-swiecie-fabryka-dynamitu-zobaczcie-zdjecia-z-jubileuszu/ar/c3-15843353 |language=pl |title=Nitroerg w Bieruniu ma 150 lat. To ósma w świecie fabryka dynamitu. Zobaczcie zdjęcia z jubileuszu |website=dziennikzachodni.pl |author=Jolanta Pierończyk |date=9 October 2021 |access-date=10 April 2023}}</ref>

In 2022, the company announced plans to invest in the ] sector, especially in ]s,<ref>{{Cite web |url=https://www.maritime-executive.com/article/oil-major-joins-copper-mining-firm-to-bid-on-offshore-wind-leases |title=Oil Major Joins Copper Mining Firm to Bid on Offshore Wind Leases |website=maritime-executive.com |date=12 April 2022 |access-date=10 April 2023}}</ref> and potential acquisitions of finished ]s projects. The company is also preparing a series of investments connected to buying, processing and preparing copper-bearing scrap. Asked about the potential impact of the ] on the company, KGHM's CEO Marcin Chludzinski responded that it "would not have a significant impact on the company's operations" and that potential ] on Russian copper would be positive for the company.<ref>{{Cite web |url=https://www.kitco.com/news/2022-03-24/Poland-miner-KGHM-eyes-acquisitions-in-renewable-energy-sector.html |title=Poland miner KGHM eyes acquisitions in renewable energy sector |website=kitco.com |date=24 March 2022 |access-date=10 April 2023}}</ref>

In May 2022, KGHM was represented in the Polish delegation headed by Polish President ] and Prime Minister ] at the 2022 ] as part of the promotion of the ]. The same year, the company also signed an agreement with US-based company ] to implement small ] (SMR) technology in Poland. The first power plant is to be in operation by 2029.<ref>{{Cite web |url=https://www.marketscreener.com/quote/stock/KGHM-POLSKA-MIED-S-A-1413331/news/KGHM-Polska-Mied-S-A-Global-mining-giant-at-the-World-Economic-Forum-in-Davos-40605986/ |title=KGHM Polska Mied? S A : Global mining giant at the World Economic Forum in Davos |website=marketscreener.com |date=24 May 2022 |access-date=10 April 2023}}</ref><ref>{{Cite web |url=https://www.nasdaq.com/articles/polish-miner-kghm-to-announce-small-scale-nuclear-reactor-plans |title=Polish miner KGHM to announce small-scale nuclear reactor plans |website=nasdaq.com |author=Alan Charlish and Anna Wlodarczak-Semczuk |date=14 February 2022 |access-date=10 April 2023}}</ref>

In 2023, the company announced a multi-million investment project in the Legnica Copper Smelter and Refinery in an effort to protect the environment. The project aims to nearly completely eliminate ] and ] emissions thanks to a new Post-Process Gas Treatment Plant.<ref>{{Cite web |url=https://media.kghm.com/en/news-and-press-releases/multi-million-investment-by-kghm-to-protect-the-environment-work-continues-at-the-legnica-copper-smelter-and-refinery |title=Multi-million investment by KGHM to protect the environment - work continues at the Legnica Copper Smelter and Refinery |website=media.kghm.com |date=31 March 2023 |access-date=10 April 2023}}</ref>

===Controversy===
There has been controversy where the company had dumped toxic waste into the ] illegally, causing a massive ecological disaster. The dumping of industrial wastewater which had a higher than normal salt content allowed the proliferation of ], a species of algae responsible for the ].<ref>{{cite web |last1=Free |first1=G. |last2=Van de Bund |first2=W. |last3=Gawlik |first3=B. |last4=Van Wijk |first4=L. |last5=Wood |first5=M. |last6=Guagnini |first6=E. |last7=Koutelos |first7=K. |last8=Annunziato |first8=A. |last9=Grizzetti |first9=B. |last10=Vigiak |first10=O. |last11=Gnecchi |first11=M. |last12=Poikane |first12=S. |last13=Christiansen |first13=T. |last14=Whalley |first14=C. |last15=Antognazza |first15=F. |last16=Zerger |first16=B. |last17=Hoeve |first17=R. J. |last18=Stielstra |first18=H. |title=An EU analysis of the ecological disaster in the Oder River of 2022: lessons learned and research based recommendations to avoid future ecological damage in EU rivers, a joint analysis from DG ENV, JRC and the EEA |url=https://op.europa.eu/en/publication-detail/-/publication/acae85a4-ae18-11ed-8912-01aa75ed71a1/language-en#:~:text=During%20August%202022%20massive%20fish,500%20km%20of%20the%20river. |publisher=Publications Office of the European Union |date=2023}}</ref>

==Corporate affairs==
===Structure===
KGHM Polska Miedź currently has two subsidiaries:

* KGHM International Ltd. is a wholly owned subsidiary
* Sierra Gorda SCM is a 55% subsidiary

=== Leadership ===
KGHM is led by a six-member management board, which is led by president and CEO Andrzej Szydło. The other members are Piotr Krzyżewski, Mirosław Laskowski, Zbigniew Bryja, Piotr Stryczek i Iga Dorota Lis. The supervisory board is led by chairman Tadeusz Kocowski and vice chairman Aleksander Cieśliński.<ref>{{Cite web|url=https://kghm.com/en/about-us/leadership|title=Leadership|date=2014-11-20|website=KGHM Corporate Website|language=en|access-date=2019-02-15}}</ref>

=== Shareholder ===
Since July 1997, KGHM has been listed on the Warsaw Stock Exchange.<ref>{{Cite web|url=https://kghm.com/en/investors/share-information|title=Share Information|date=2014-08-26|website=KGHM Corporate Website|language=en|access-date=2019-02-18|archive-date=2020-09-22|archive-url=https://web.archive.org/web/20200922013746/https://kghm.com/en/investors/share-information|url-status=dead}}</ref>

As of February 2019 the company's shareholder structure is:<ref>{{Cite web|url=https://kghm.com/en/investors/share-info/equity-ownership|title=Ownership|date=2014-11-20|website=KGHM Corporate Website|language=en|access-date=2020-02-07|archive-date=2020-06-08|archive-url=https://web.archive.org/web/20200608145514/https://kghm.com/en/investors/share-info/equity-ownership|url-status=dead}}</ref>

* 31.79% - Polish State Treasury
*5.05% - Nationale-Nederlanden OFE
* 5.02% - Aviva OFE
*58.13% - Other shareholders

==Operations==
KGHM has operations in the main areas mining and enrichment, metallurgy (smelting and refining) and project development and is currently active in four countries: ], ], ] and the ]. In 2017, the company produced a total of 656 thousand tons of copper, 1,234 thousand tons of silver, 117 thousand troy ounces of gold, and 10 thousand tons of ].<ref>{{Cite web|url=https://kghm.com/en/annual-report-2017|title=Annual report for 2017|date=2018-01-22|website=KGHM Corporate Website|language=en|access-date=2019-02-16}}</ref>

=== Mining and enrichment ===

====Robinson Mine====
{{Main|Robinson Mine}}
The Robinson Mine is located in ]. It is an ] that produces copper with byproduct gold and molybdenum. It was KGHM International's most profitable mine, pulling in a net revenue of $532.9 million in 2012.

====Carlota Mine====
The Carlota Mine is located in ]. Like the Robinson mine, it is an open pit mine and produces copper. It is scheduled to close in 2013, despite operating through multiple court challenges.<ref>{{cite web|url=http://www.gvnews.com/state/a-carlota-mine-timeline/article_9d48d288-94a6-11e1-b076-001a4bcf887a.html|title=A Carlota Mine timeline – Green Valley News: State News|last=Rodriguez|first=Salvador|date=2012-05-02|publisher=Gvnews.com|access-date=2014-02-25}}</ref> Its net revenue for 2012 was $84.1 million.

==== Sierra Gorda ====
{{Main|Sierra Gorda Copper Mine Project}}
Sierra Gorda Project mining in ] is a Copper-Molybdenum open pit mine which started production on October 1, 2014 and is a jointly operated by KGHM International Ltd (55%), Sumitomo Metal Mining Co. (31.5%) and ] (13.5%).

====Franke Mine====
The Franke Mine is located in northern Chile. It is also an open pit mine and produces copper. Its net revenue for 2012 was $152.5 million. KGHM International is blending Franke pit with a partnered China mine, with less mining being focused on Franke.<ref>{{cite news|url=http://www.thesudburystar.com/2013/01/09/podolsky-miners-receive-layoff-notices|title=Podolsky Mine closing|date=2013-01-10|newspaper=]|access-date=2014-02-25}}</ref>

===Smelting and refining===
KGHM owns three copper smelters: "Głogów", "Legnica", and "Cedynia".<ref name="Smelting and Refining">{{cite web|url=http://kghm.com/en/our-business/smelting-and-refining |title=Smelting and refining &#124; KGHM Corporate Website |website=Kghm.com |date=26 August 2014 |access-date=2017-07-14}}</ref> KGHM's smelters also produce lead, refined lead, sulphuric acid, nickel sulphate, and platinum-palladium concentrate.

===Projects under development===

*Deep Głogów<ref name="Deep Głogów">{{cite web|url=http://kghm.com/en/our-business/projects-under-development/deep-glogow |title=Deep Głogów &#124; KGHM Corporate Website |website=Kghm.com |date=29 October 2014 |access-date=2017-07-14}}</ref>
*Victoria<ref name="Victoria Mine">{{cite web|url=http://kghm.com/en/our-business/projects-under-development/victoria |title=Victoria &#124; KGHM Corporate Website |website=Kghm.com |date=29 October 2014 |access-date=2017-07-14}}</ref>
*Ajax Mine Project<ref name="Ajax Mine Project">{{cite web|url=http://ajaxmine.ca/project-information |title=Ajax Project - KGHM International - Project Information |website=Ajaxmine.ca |date=2014-06-20 |access-date=2017-07-14}}</ref>
*Sierra Gorda mine<ref name="Sierra Gorda">{{cite web|url=http://www.kghm.com/en/sierra-gorda-mine-officially-inaugurated-chile |title=Sierra Gorda mine officially inaugurated in Chile &#124; KGHM Corporate Website |website=Kghm.com |date=2014-10-20 |access-date=2017-07-14}}</ref>

== Awards and recognitions ==

In 2011, the company was awarded with the ] in ], for its achievements and investments towards sustainable development.<ref>{{cite web | url=http://www.flogen.org/awards.php?spage=2&sp=2&sp2=Herbert_Wirth_SIPS2011 | title=Herbert Wirth accepts Fray International Sustainability Award in Mexico on behalf of KGHM | website=www.flogen.org | publisher=FLOGEN Star OUTREACH | language=en | access-date=2018-02-19 | archive-date=2018-02-20 | archive-url=https://web.archive.org/web/20180220033456/http://www.flogen.org/awards.php?spage=2&sp=2&sp2=Herbert_Wirth_SIPS2011 | url-status=dead }}</ref>

==Carbon footprint==
KGHM reported Total ] (Direct + Indirect) for the twelve months ending 31 December 2020 at 3,592 Kt (-570 /-13.7% y-o-y).<ref name ="KGHM Total CO2e emissions for 2020Q4">{{Cite web |title=KGHM's Sustainability Report for 2020Q4 |archive-url=https://web.archive.org/web/20211001122909/https://kghm.com/sites/kghm2014/files/document-attachments/integrated_report_2020_of_kghm_polska_miedz_sa.pdf |url=https://kghm.com/sites/kghm2014/files/document-attachments/integrated_report_2020_of_kghm_polska_miedz_sa.pdf|archive-date=October 1, 2021 }} </ref>

{| class="wikitable"
|+ KGHM's annual Total ] (Direct + Indirect) (in kilotonnes)
|-
! Dec 2019 !! Dec 2020
|-
| 4,162<ref>{{Cite web |title=KGHM's Sustainability Report for 2020Q4 |archive-url=https://web.archive.org/web/20211001122909/https://kghm.com/sites/kghm2014/files/document-attachments/integrated_report_2020_of_kghm_polska_miedz_sa.pdf |url=https://kghm.com/sites/kghm2014/files/document-attachments/integrated_report_2020_of_kghm_polska_miedz_sa.pdf|archive-date=October 1, 2021 }} </ref> || 3,592<ref name="KGHM Total CO2e emissions for 2020Q4"/>
|}

==References==
{{Reflist|30em}}

==External links==
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Latest revision as of 13:14, 11 November 2024

Polish multinational mining corporation
KGHM Polska Miedź S.A.
Company typeSpółka Akcyjna
Traded as
ISINPLKGHM000017
IndustryMetals, Mining, Metallurgy
Founded1961; 63 years ago (1961)
HeadquartersLubin, Poland
Area servedWorldwide
Key peopleMarcin Chludziński
President and CEO
Andrzej Kisielewicz
Chairman of the Supervisory Board
ProductsCopper, Copper sulphate, Gold, Silver, Nickel, Nickel sulphate, Molybdenum, Rhenium, Lead, Sulphuric acid, Selenium, Platinum
RevenueIncrease €3.9 billion (2019)
Operating incomeDecrease €254 million (2019)
Net incomeIncrease € 135 million (2019)
Total assets€ 9.2 billion (2019)
Total equity€ 4.6 billion (2019)
Number of employees33,935 (2017)
SubsidiariesKGHM International Ltd (100%)
Sierra Gorda SCM (55%)
WebsiteKGHM Corporate Website
KGHM copper works in Legnica

KGHM Polska Miedź S.A. (Kombinat Górniczo-Hutniczy Miedzi), commonly known as KGHM (Polish pronunciation: ), is a Polish multinational mining corporation headquartered in Lubin, Lower Silesia, Poland. Founded in 1961 as a state enterprise, the company is considered a major global producer of copper and silver. Since 1997, it has been listed on the Warsaw Stock Exchange (WSE). The company is also a component of the WIG30 stock market index.

Currently, KGHM employs around 34,000 people worldwide and operates 9 open-pit and underground mines in Poland, Canada, the United States and Chile. KGHM produces key global resources including copper, copper sulphate, gold, silver, nickel, nickel sulphate, molybdenum, rhenium, lead, sulphuric acid, selenium, platinum group metals.

History

Early history and foundation

In 1951, the construction of the Copper Smelter in Legnica was commenced to smelt copper from the ore mined in the so-called old Lower Silesian copper basin ("Lena" and "Konrad" mines).

In 1957, Jan Wyżykowski discovered copper ore deposits near Lubin and Polkowice ("Sieroszowice" field).

On December 28, 1959 by the decision of the Ministry of Heavy Industry, Zakłady Górnicze "Lubin" was established as a state owned company and in 1961, transformed into Kombinat Górniczo-Hutniczy Miedzi (KGHM), which was supposed to deal with the extraction and processing of copper extracted from the newly discovered fields. At the same time, KGHM incorporated two copper mines in the area of the piedmont of the Sudetes from the old copper-bearing basin (closed in 1973 - "Lena" and in 2000 - "Konrad").

Expansion

In the years 1962-1975, Tadeusz Zastawnik was the director of KGHM (in the years 1952-1957 he was a Member of Parliament, and in the mid-1950s the director of the Union of Mining and Metallurgy of Non-Ferrous Metals). In 1968, the construction of the "Lubin" and "Polkowice" mines and the modernization of the Legnica smelter ended. The construction of the Głogów smelter started, and at the end of the 1960s, geologists discovered new, even richer copper deposits in Rudna.

In January 1996, the "Polkowice-Sieroszowice" Division was established, which was established as the result of the merger "Polkowice" and "Sieroszowice" mines.

From the day the state enterprise was established, until August 9, 1976, the Minister of Heavy Industry, and then the Minister of Metallurgy (the office was transformed into the office of the Minister of Metallurgy and Machine Industry) supervised operations.

Transformation

On September 9, 1991, the state-owned enterprise Kombinat Górniczo-Hutniczy Miedzi in Lubin was transformed into a sole-shareholder company of the State Treasury - KGHM Polska Miedź SA. On September 12, 1991, the company was entered in the commercial register kept by the District Court in Legnica and on the same day, the court removed the former entity from the register of state-owned enterprises.

Integration

Rudna Copper Mine in Lower Silesia, Poland

On December 6, 2011, the management boards of KGHM Polska Miedź SA and Quadra FNX Mining Ltd. signed an agreement on the takeover of the Canadian enterprise by KGHM. On February 20, 2012, the general meeting of shareholders of Quadra FNX Mining Ltd. accepted the transaction of a friendly takeover of 100% of shares in the company Quadra FNX by KGHM Polska Miedź SA, and on March 5, 2012, the above transaction was closed.

Since then, Quadra FNX has been operating under the new name of KGHM International Ltd. The transaction value amounted to approximately $2.9 billion. The purchase was financed with funds of KGHM After the acquisition, the size of the combined resource base is 37.4 million tons of copper (fourth largest deposit in the world). The combined annual copper production was then 526 thousand tonnes. One of the key assets of KGHM International Ltd. is the Sierra Gorda field. The deposit is located in Chile and contains 1.3 billion tons of ore rich in copper, gold and molybdenum.

Recent developments

In May 2015, a new production line was launched at the Nitroerg plant in Bieruń.

In 2022, the company announced plans to invest in the renewable energy sector, especially in offshore wind farms, and potential acquisitions of finished photovoltaic farms projects. The company is also preparing a series of investments connected to buying, processing and preparing copper-bearing scrap. Asked about the potential impact of the 2022 Russian invasion of Ukraine on the company, KGHM's CEO Marcin Chludzinski responded that it "would not have a significant impact on the company's operations" and that potential sanctions on Russian copper would be positive for the company.

In May 2022, KGHM was represented in the Polish delegation headed by Polish President Andrzej Duda and Prime Minister Mateusz Morawiecki at the 2022 Davos World Economic Forum as part of the promotion of the Polish economy. The same year, the company also signed an agreement with US-based company NuScale Power to implement small modular nuclear reactor (SMR) technology in Poland. The first power plant is to be in operation by 2029.

In 2023, the company announced a multi-million investment project in the Legnica Copper Smelter and Refinery in an effort to protect the environment. The project aims to nearly completely eliminate arsenic and mercury emissions thanks to a new Post-Process Gas Treatment Plant.

Controversy

There has been controversy where the company had dumped toxic waste into the Oder River illegally, causing a massive ecological disaster. The dumping of industrial wastewater which had a higher than normal salt content allowed the proliferation of Prymnesium parvum, a species of algae responsible for the 2022 Oder environmental disaster.

Corporate affairs

Structure

KGHM Polska Miedź currently has two subsidiaries:

  • KGHM International Ltd. is a wholly owned subsidiary
  • Sierra Gorda SCM is a 55% subsidiary

Leadership

KGHM is led by a six-member management board, which is led by president and CEO Andrzej Szydło. The other members are Piotr Krzyżewski, Mirosław Laskowski, Zbigniew Bryja, Piotr Stryczek i Iga Dorota Lis. The supervisory board is led by chairman Tadeusz Kocowski and vice chairman Aleksander Cieśliński.

Shareholder

Since July 1997, KGHM has been listed on the Warsaw Stock Exchange.

As of February 2019 the company's shareholder structure is:

  • 31.79% - Polish State Treasury
  • 5.05% - Nationale-Nederlanden OFE
  • 5.02% - Aviva OFE
  • 58.13% - Other shareholders

Operations

KGHM has operations in the main areas mining and enrichment, metallurgy (smelting and refining) and project development and is currently active in four countries: Poland, Canada, Chile and the USA. In 2017, the company produced a total of 656 thousand tons of copper, 1,234 thousand tons of silver, 117 thousand troy ounces of gold, and 10 thousand tons of molybdenum.

Mining and enrichment

Robinson Mine

Main article: Robinson Mine

The Robinson Mine is located in Nevada. It is an open pit mine that produces copper with byproduct gold and molybdenum. It was KGHM International's most profitable mine, pulling in a net revenue of $532.9 million in 2012.

Carlota Mine

The Carlota Mine is located in Arizona. Like the Robinson mine, it is an open pit mine and produces copper. It is scheduled to close in 2013, despite operating through multiple court challenges. Its net revenue for 2012 was $84.1 million.

Sierra Gorda

Main article: Sierra Gorda Copper Mine Project

Sierra Gorda Project mining in Chile is a Copper-Molybdenum open pit mine which started production on October 1, 2014 and is a jointly operated by KGHM International Ltd (55%), Sumitomo Metal Mining Co. (31.5%) and Sumitomo Corporation (13.5%).

Franke Mine

The Franke Mine is located in northern Chile. It is also an open pit mine and produces copper. Its net revenue for 2012 was $152.5 million. KGHM International is blending Franke pit with a partnered China mine, with less mining being focused on Franke.

Smelting and refining

KGHM owns three copper smelters: "Głogów", "Legnica", and "Cedynia". KGHM's smelters also produce lead, refined lead, sulphuric acid, nickel sulphate, and platinum-palladium concentrate.

Projects under development

  • Deep Głogów
  • Victoria
  • Ajax Mine Project
  • Sierra Gorda mine

Awards and recognitions

In 2011, the company was awarded with the Fray International Sustainability Award in Mexico, for its achievements and investments towards sustainable development.

Carbon footprint

KGHM reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 3,592 Kt (-570 /-13.7% y-o-y).

KGHM's annual Total CO2e emissions (Direct + Indirect) (in kilotonnes)
Dec 2019 Dec 2020
4,162 3,592

References

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External links

Poland WIG30 companies of Warsaw Stock Exchange


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