Mining and metallurgical production
The best utilization of the Company’s resource base and production capacity and optimization of the copper content in the extracted ore and concentrates were the main goals in 2017 in mining and smelting production.
In 2017, we extracted 31.2 million tons of ore, with the dry weight of 0.8 million tons, which is less than in 2016. The decrease in the extracted volume follows from the reduction of working hours in days of work because of the lower amount of processed concentrates than planned in Głogów I Smelter and optimization of concentrate supplies in copper smelters. The average content of copper in the extracted ore was 1.5 percent and was at a similar level as in 2016.
The content of silver in the ore extracted was at a level higher by 3 percent, amounting to 47.8 g/ton. As a result, the copper quantity in extracted ore was lower by 13.2 thousand tons than in 2016, reaching 466.8 thousand tons. The volume of silver in the ore extracted increased by 8 tons and was 1,490 tons. In 2017, our plants processed 31.5 million tons of ore on a dry weight basis (246 thousand tons less than in 2016). The lower extraction level in the mines had a direct impact on the quantity of copper concentrate, which was 419.3 thousand tons.
The concentrate production (dry weight) decreased against 2016 by 33 thousand tons (a decline from 1,866 to 1,833 thousand tons). The volume of silver in concentrate was higher than in 2016 by 25 tons (an increase from 1,265 to 1,290 tons).
Mining production of KGHM Polska Miedź S.A.
|Ore extraction (wet weight)||million tons||32.8||32.6||+0.6|
|Ore extraction (dry weight)||million tons||31.2||32.0||(2.5)|
|Copper content in ore||%||1.50||1.50||-|
|Copper quantity in ore||kt||466.8||480.0||(2.8)|
|Silver content in ore||g/ton||47.8||46.3||+3.1|
|Silver quantity in ore||tons||1,490||1,482||+0.5|
|Production of concentrate (dry weight)||kt||1,833||1,866||(1.8)|
|Copper content in concentrate||kt||419.3||424.3||(1.2)|
|Silver content in concentrate||tons||1,290||1,265||+2.0|
The production of electrolytic copper fell by 13.6 thousand tons, i.e. 2.5% compared to 2016. The lower production of electrolytic copper follows from the recovery of full production capacity of Głogów I Smelter and a failure of the heat recovery steam generator on 3 October 2017. (the production process at Głogów I Smelter was resumed on 30 October 2017). Supplementing copper from own concentrates by purchased copper-bearing materials, in the form of scrap, blister and imported concentrates, allowed for the effective use of the existing technological capacities. The production of the remaining smelting products (silver, wire rod, OFE wire and billets) derives from the production scale of electrolytic copper and depends on the type of raw materials used and, most importantly, on market demand. Compared to 2016, the production of metallic gold grew by 3.5 thousand troy ounces, i.e. 3% and for the first time in the history of KGHM Polska Miedź S.A., it hit the volume watermark of 117.3 thousand troy ounces. The production of metallic silver was higher by 27 tons, closing the annual result at the level of 1,218 tons.
Smelting production of KGHM Polska Miedź S.A
|Electrolytic copper, including:||kt||522.0||535.6||(2.5)|
|- production from own concentrates||mln t||358.9||376.0||(4.5)|
|- production from external concentrates||kt.||148.0||159.6||(7.3)|
|- production from processing||kt||15.1||-||×|
|Copper wire rod, OFE wire and CuAg||kt||257.9||267.4||(3.6)|
|Metallic gold||k troy ounces||117.3||113.8||+3.1|
|Refined lead||k t||30.0||30.1||(0.3)|