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Wherever we operate or intend to operate, we hold meetings with local authorities. Since KGHM Polska Miedź S.A. operates on several continents, it encounters a variety of cultures and interacts with indigenous communities. Maintaining proper relations is one of our priorities. We always act in accordance with the law and we care for KGHM’s reputation. In every area in which we operate we feel responsible for local communities, and we analyze social and cultural aspects of our impact.

The document regulating the issues concerning relations with local communities, which prevails in the KGHM Group, is the Code of Ethics. Pursuant to this document, we stimulate social and economic development in the places in which we conduct our operations. We are doing this by taking actions as part of the Corporate Social Responsibility Strategy, including actions related to environmental protection, responsible investing or adding jobs. When collaborating with local communities, we are building their trust in KGHM and we contribute to strengthening the KGHM brand.

Our rules:
  • We respect the cultures and habits of the countries or regions in which we operate
  • When making business decisions, we keep in mind local communities.
  • We are actively listening to the voice of local communities and we take their opinions into consideration
  • We are honest when negotiating with local communities

In 2017, we conducted talks with local communities as part of collaboration in extension of the Żelazny Most Tailings Storage Facility to include Southern Quarters (Kwatera Południowa). In 2017, the company signed the Memorandums of Agreement with Rudna and Grębocice municipalities under which funds will be transferred by 2019 earmarked for projects in the following areas: holidays for children, healthcare, spa holidays for adults, revitalization of parks and leisure areas, cleaning the ditches, securing the rivers, protection of soil and crops from harmful impacts of the industry, and protection of cultural heritage sites. A Memorandum of Agreement was signed with the Polkowice municipality for cooperation with KGHM Polska Miedź S.A. in the following areas:

  • organization and co-funding of summer and winter holidays for children and young people,
  • healthcare
  • soil and crops protection
  • seeking alternative thermal energy supply solutions
  • broader access to the Internet,
  • improvement of the cover of mobile phone networks
  • ensuring the safety of the local communities directly adjacent to the Żelazny Most Tailings Storage Facility

BEST PRACTICE

In certain municipalities of the Copper Basin, the KGHM Polska Miedź S.A. Health Promotion and Environmental Hazards Prevention Program is carried out. Its purpose is to provide preventive care for the inhabitants of the Copper Basin with a special focus on children and young people through the implementation of tasks such as:

- prevention and health trips to mountain or seaside spas as part of the “Green School” program,
- year-long rehabilitation and sports activities at a swimming pool,
- tests monitoring the presence of lead in blood,
- tests monitoring the presence of arsenic in the bodies of the region’s inhabitants
- environmental education combined with promotion of health.

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In 2017, we also signed the partnership agreement with the Gaworzyce township for the redevelopment of the road in Kłobuczyn which was destroyed during the hail and rainstorm in July 2016. As part of its activities related to corporate social responsibility, the Company helps not only the local governments. In 2017, the Company was involved in helping the victims of severe storms. As part of this assistance, the KGHM Polska Miedź Foundation contributed PLN 0.5 million to financial donations for individuals affected by the storms in Kujawsko–Pomorskie and Pomorskie Voivodships, to lease residential containers to provide their temporary accommodation and to rebuild a playground for children. In addition, the Company provided building materials for reconstruction of residential buildings destroyed by severe storms in both voivodships

BEST PRACTICE

In August 2017, several people were killed as a result of severe storms that swept through Poland. Two girl scouts taking part in a scout camp in the Pomerania region were among the casualties. More than ten people were taken to the hospital. Thousands of people living in the north of Poland lost everything they owned. KGHM could not remain indifferent to the fate of those who suffered in the storms.
Our Company’s representatives visited the most affected municipalities in the Pomerania and Kashubia regions in November, providing financial donations and donations-in-kind to victims. The KGHM Foundation provided funds amounting to PLN 500 thousand and approximately PLN 15 thousand worth of building materials. 16 municipalities in the Pomorskie and Kujawsko-Pomorskie Voivodships benefited from that assistance. The funds were transferred to municipal authorities which subsequently paid them out via their Social Welfare Centers

BEST PRACTICE

In 2017, thanks to KGHM Polska Miedź S.A.’s help, five families from Kazakhstan were able to relocate to Poland and make Poland their home. The company offered employment to the repatriates, as well as aid in finding a place to live, daily support in adaptation to Polish conditions and the KGHM Group’s work environment, and Polish language lessons.

We cooperate with the surrounding municipalities in, among others, their development strategies, and support their development through payment of taxes or hiring residents of adjacent towns. The Company has entered into several social agreements whose purpose is to increase the living standards of residents. The Company’s representatives are participating in meetings and sessions of city and municipality councils, and in events organized by local governments. Every year, mayors of municipalities, towns and cities participate in festivities organized to commemorate the Miner’s Day and the Metallurgy Worker’s Day. We also provide financial support to municipalities through the sponsorship of events organized by local governments. The KGHM Polska Miedź Foundation funds summer and winter holidays for the children as well as environmentally-oriented camps (the “Green School” program) or trips to the swimming pool. Social dialogue is embedded in the Company’s sustainable development strategy.
In March 2017, KGHM Polska Miedź S.A. established a team for negotiating the agreement between our company and the Żukowice municipality related to planned investment projects. The team’s purpose is to take actions to have the consent issued for the change of the local zoning plan and study for construction of the GG – 2 Mine Shaft. The Głogów Głęboki-Przemysłowy mine shaft is the largest deep mining project in Europe in terms of resources. The mining of the deposit will enable KGHM to maintain its current levels of extraction in Poland for several dozen years and will ensure a further increase in the wealth of the Copper Basin residents.

Budget revenues of municipalities* per capita in 2016

* Net of the revenues of municipalities that are cities with the status of a district.

The following signif cant risks and their mitigations have been def ned at the level of the KGHM Group in the social dialogue area:

Stakeholders
RiskMitigation
(KGHM Group) Risk of a negative image campaign conducted in the media, and risk of the development and exploration works not being accepted by the local communities, local authorities and other stakeholders.
Implementation of the CSR Strategy, close collaboration with public administration authorities, meetings and negotiations with stakeholders, information campaigns, conferences, publications. Close cooperation and relations with local communities.

The risk is validated on a quarterly basis on a f ve-degree scale using an expert method and inf uences the Management Board’s decisions. The risk data are analyzed in positive and negative categories on the 1-5 scale in terms of reputation and stakeholders.

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BEST PRACTICE

Cooperation with local communities is very important for us, not only in Poland. In 2017, also the company Sierra Gorda undertook. actions aimed at improving the quality of community life. They included, among other things:

- Placing the Community Clean Point in the Antofagasta Events Park – it was f nanced using the funds of the 20th National Contest of Environmental Protection Fund of the Ministry of
Environment and Sierra Gorda SCM

- The Arboriculture Project – an initiative launched by Sierra Gorda SCM in cooperation with the National Forestry Corporation (CONAF)

- Support for regional sports programs

- Participation of the company in the Association of Antofagasta Industrialists Community Program

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