We are an international corporation, but we do not forget KGHM’s strong roots in Lower Silesia in Poland. In 2017, we celebrated the 60th anniversary of the discovery of copper ore deposits by geologist Jan Wyżykowski. That historical discovery in the chronicles of the national economy became the driving force underpinning the development of the region and Poland alike. We owe not only KGHM Polska Miedź S.A.’s establishment to it, but also Poland’s position as one of the copper powerhouses. 

Last year we also celebrated the 20th anniversary of the Company being listed on the Warsaw stock market. The great Stock Exchange debut was preceded by an unprecedented transformation from a company operating in a centrally planned economy into a profitable company operating in free market conditions. KGHM’s opening share price was PLN 23.50. In turn, two decades later it oscillates around PLN 110. Last year, KGHM’s share price posted nearly 20% growth in PLN under the influence of more favourable macroeconomic conditions. We are among the largest listed companies.

Selected social components in the value chain that defines our corporate social responsibility model


We rely on trained employees and competent management. Their enormous experience and knowledge of the mining and smelting industry enable us to successfully carry out even the most complex mining projects. We prove our competencies in everyday work. Our expert's conduct, among other things, intensive exploration works in regions neighbouring production assets, which leads to an increase in the level of documented resources. 

We are creating a portfolio of assets to guarantee continuous shareholder value creation - we control 22.7 million tons of the world’s copper resources, and the KGHM Group’s facilities are located in economically and politically stable countries that support the development of mining. We are innovative. We undertake research and development projects focused on the development and implementation of innovative technological and organizational solutions improving efficiency and occupational safety and ensuring the continuity of production.

Why are we valuable in the sector?

We have diverted assets

Our facilities are located in economically and politically stable countries which support the development of mining.

We have high-quality resources at our disposal

The production assets in Poland (accounting for more than one half of the Group’s production) are located on one of the world’s largest copper ore deposits with the prospect of many more years of operation (30–40 years).

We undertake projects with a dynamic prof le

Intensive exploration in regions neighbouring production assets leads to an increase in the level of documented resources. We are creating a portfolio of assets which guarantee continuous value building for shareholders.

We rely on trained employees and competent management

We have significant experience and proven competencies in carrying out projects, and an in-depth understanding of the mining and smelting industry. We also have experienced teams of experts in all areas o mining and smelting, wherever we conduct our operations. They provide us with the necessary support in building the Company’s value

We are innovative

In 2017, we carried out more than 170 research and development projects and prepared expert scientific opinions for the total value of more than PLN 44 million.

Our assets


The Polkowice-Sieroszowice Mine is located in Lower Silesia, to the west of the town of Polkowice. Currently, it conducts mining works in four mining areas: “Polkowice”, “Radwanice Wschodnie”, “Sieroszowice” and in a part of the “Głogów Głęboki – Przemysłowy” (Deep Głogów) deposit. Within the “Sieroszowice” deposit, there are also rich deposits of rock salt above the copper-bearing horizon. Mining is conducted using blasting technology together with various room-and-pillar methods with natural room settlement. The Polkowice-Sieroszowice Mine’s current production capacity is approx. 12 million tons of ore per year.

Location:Lower Silesia, Poland
Type of mine:Underground
Main ore type:Copper ore
Associated mineralsSilver, lead, rock salt, gold
End product: Copper ore
Copper in extracted ore in 2017:204.6 kt

The Rudna Mine is located in Lower Silesia, to the north of the town of Polkowice. Primarily, it mines the “Rudna” deposit, but it also develops and operates in the “Sieroszowice” and “Głogów Głęboki-Przemysłowy” (Deep Głogów) deposits. The copper orebody in the Rudna deposit ranges from 844 meters to 1,250 meters, and in the Deep Głogów deposit is up to 1,385 meters. The current average production capacity is approx. 12million t of ore per year.

Location: Lower Silesia, Poland
Type of mine: Underground
Main ore type:Copper ore
Associated minerals:Silver, lead,  gold
End product: Copper ore
Copper in extracted ore in 2017:195.3 kt

The Lubin Mine is located in Lower Silesia, Poland, to the north of the town of Lubin. The Lubin-Małomice copper orebody lies at a depth ranging from 368 meters to 1,006 meters. The deposit is mined by blasting technology using the room-and-pillar method with natural roof settlement and with hydraulic backf ll in the vicinity of the support pillar of the town of Lubin. The mine’s current production capacity is approx. 8 million t of ore per year.

Location: Lower Silesia, Poland
Type of mine: Underground
Main ore type:Copper ore
Associated minerals:Silver, lead, gold
End product:Copper ore
Copper in extracted ore in 2017:66.9 kt

This complex of metallurgical plants located in Głogów comprises two copper concentrate smelting lines based on the single-stage smelting of concentrate in a fash furnace directly into blister copper. Apart from electrolytic copper, the Głogów Smelter Branch produces crude lead (up to 30 thousand tons annually), silver (approx. 1,200 t), Pt-Pd slime (approx. 80 kg), gold (approx. 2.7 t) and sulfuric acid (over 570 kt).

Location: Lower Silesia, Poland
Type of mine: Smelter/refinery
End product:Electrolytic copper
Electrolytic copper production in 2017: 406.9 kt

The smelter located in Legnica has a current production capacity of 110 thousand tons of electrolytic copper. It has been in operation since the 1950s, using shaft furnace technology. In addition to electrolytic copper, the plant also produces round billets, approx. 30 thousand tons annually of ref ned lead and 122 kt of sulfuric acid, as well as copper sulfate and nickel sulfate.

Location: Lower Silesia, Poland
Type of mine: Smelter/refinery
End product:Electrolytic copper
Electrolytic copper production in 2017: 115.1 kt

Production at the Cedynia Rolling Mill located in the vicinity of Orsk is based on the use of copper cathodes, 75% of which come from the Głogów Smelter and 25% from the Legnica Smelter. The basic product of the Cedynia Smelter is copper wire rod produced in a Contirod line amounting to over 250 thousand tons annually and more than 16 thousand tons annually of oxygen-free copper wire rod (OFE) produced in an UPCAST line, including oxygen-free, silver-bearing copper wire rod.

Location: Lower Silesia, Poland
Type of mine: Processing
End product:Copper wire rod and OFE rod
Electrolytic copper production in 2017:242.1 kt of copper wire rod and 15.8 kt of OFE rod

The mine is located in White Pine county, Nevada, USA, approx. 11 km west of Ely (approx. 400 km north of Las Vegas), in the Egan range, at an average altitude of 2,130 meters above sea level, near highway no. 50. The mine comprises 3 large pits: Liberty, Tripp-Veteran and Ruth. Currently, Ruth is in operation. The ore is extracted using conventional surface methods and is then processed into a copper and gold concentrate, and separately into molybdenum concentrate in a concentrating plant. Additionally, there is the Carlota mine, located in the western part of the Miami-Globe mining region, approx. 10 km to the west from the city of Miami, on the Gila/Pinal county line in eastern Arizona, USA. Since 2014, the mine’s operations have been focusing mainly on leaching the extracted copper ore and on the production of copper cathodes in the SX/EW plant. In 2017, a number of technical tasks were carried out to extend the life of assets by one year while increasing production through the planned exploitation of the Eder South area.

Location: Nevada, USA
Type of mine: Surface
Mine ore type:Copper ore
Associated minerals:Gold and molybdenum
End product: Copper and gold concentrate, molybdenum concentrate
Payable copper production:48.8 kt
  1. Kopalnia MORISSON

The mine is located on the edge of the town of Sudbury, Ontario Province, Canada. The ore is accessed and mined with the aid of leased infrastructure of the adjoining Craig mine owned by Xstrata Nickel. Mineralization in the Morrison deposit most commonly occurs in the form of ore veins. Mining is carried out at a level of approx. 1,300 meters using mining techniques adapted to the deposit’s geometry – this is mainly a mechanized method of selective extraction using undercutting of successive levels from bottom to top. All of the ore extracted from the mine is processed in the Clarabelle plant in Sudbury, owned by Vale.

Location: Sudbury Basin, Ontario, Kanada
Type of mine: Underground
Main ore type:Copper, nickel, platinum palladium and gold ore
End product: Copper and nickel ore
 Payable copper production in 2017:8.5 kt

This project is located in the Canadian province of Ontario, approx. 35 km west of the town of Sudbury. In 2002, rights were acquired to the mineral deposit in the Victoria area and exploration activities were commenced on this site. All of the ore extracted from the mine is to be processed in the Clarabelle plant in Sudbury, owned by Vale. The current development scenario for the project calls for the sinking of 2 shafts to access the deposit (a production shaft and a ventilation shaft). Exploration work performed so far has confirmed the continuity and characteristics of the mineralization to a level of approx. 2,200 meters below the surface. In 2017, as part of project activities, the project team continued works consisting in securing the existing infrastructure and the project area. Additionally, works aimed at developing the optimum project implementation path were conducted in 2017.

Location: Sudbury Basin, Ontario, Kanada
Type of mine: Underground
Main ore type: Copper-nickel ore
Associated metals: Gold, platinum and palladium
Mine life: 14 years
End product: Copper, nickel and precious metal ore
Forecast annual production: 16 kt Ni, 18 kt Cu

  3. Projekt Ajax

The Ajax Project is located in Canada’s British Columbia Province, 400 km north-east of Vancouver, near the city of Kamloops. The project assumes the construction of a copper and gold strip mine along with an ore processing plant and the accompanying infrastructure. In January 2012, Abacus Mining and Exploration Inc. prepared a feasibility study, based on which the preliminary economic parameters of this project were described. Due to a substantial risk of not receiving an environmental permit based on the assumed technological parameters of the project, including the siting of the basic mine plant infrastructure, the assumptions of the feasibility study for 2012 were reviewed in terms of the identified risk factors and potential for increasing the project’s value. On 13 January 2016, the Updated Feasibility Study was published replacing the earlier version dated 6 January 2012. The Updated Feasibility Study reflects changes to the project, under which the mine’s infrastructure was moved farther away from the nearest buildings in the City of Kamloops, technological improvements were incorporated and the processing facility’s throughput capacity was increased from 60 to 65 thousand tons of ore per day. In mid-December 2017, the Ministers of Environment and the Ministers of Energy, Mining and Petroleum Resources of the Province of British Columbia (provincial authorities) made a decision to refuse to issue the environmental assessment certificate (EA Certificate) for the Ajax project. The Federal Minister of Environment and Climate Change expressed the view that the project would have considerable adverse effects and sent it back to the Department of Fisheries and Oceans Canada and to the Natural Resources Canada. The respective departments will review the matter and the federal government (composed of various federal ministers) will finally determine whether the adverse effects of the project are justified, so that the project can be carried out despite its undesirable impact. Decisions were made in the process of environmental impact assessment which included the substantial involvement of provincial and federal government agencies, indigenous people groups and a broad range of stakeholders, including thousands of representatives of local communities. KGHM Ajax Mining Ltd. will consider further steps once it has become acquainted with the reasoning in the decision issued by the Province’s authorities. These steps may involve a legal remedy in the form of a court case review.

Location: Kamloops, British Columbia, Canada
Type of mine: Underground
Main ore type: Copper ore
Associated metals: Precious metals (gold and silver)
Mine life: 19 years
End product: Copper concentrate
Forecast annual production: 53 kt Cu, 114 kt. oz Au
 1. Kopalnia Franke

The mine is located in a desert area of northern Chile, in the Altamira region, close to the southern border of the Antofagasta region and the public road connecting the mine with the Pan-American Highway. Mining is conducted by conventional surface methods from two orebodies: China and Franke. Due to the nature of the ore, it is processed using the heap leach, solvent-extraction and electrowinning method. The end product is electrolytic copper in the form of cathodes. An advanced exploration program is implemented in the Franke mine. Technical analyses are being conducted to assess the possibility of extending the asset’s life. Since fall 2017 the Franke mine is subordinate to KGHM Chile, which is directly subordinate to KGHM Polska Miedź S.A. After the restructuring, KGHM Chile moved to the new offices in Santiago de Chile shared with Sierra Gorda S.C.M. In 2017, KGHM Chile continued the process of obtaining a positive opinion of the Environmental Commission in connection with the plan to maintain operating continuity for the Franke mine. The Committee for Environmental Assessment, under the guidance of the Environmental Assessment Commission, unanimously issued a positive opinion.

Location: Region Antofagasta, Chile
Type of mine: Surface
Main ore type:IOCG (iron, copper and gold)
End product: Copper cathodes
Payable copper production in 2017:19.6 kt
 2. Kopalnia i projekt Sierra Gorda

The Sierra Gorda mine is located in the Atacama desert, in the Sierra Gorda commune in the Antofagasta region, in northern Chile, approx. 60 km south-west of the city of Calama. The mine is situated at an altitude of 1,700 meters a.s.l. and 4 km from the town of Sierra Gorda. The ore extracted from the Sierra Gorda mine is processed into copper and molybdenum concentrates. In April 2015, the molybdenum installation commenced production and from1 July 2015 the Sierra Gorda mine commenced commercial production (since then it has prepared operational statements of profit or loss). In 2017, works relating to the optimization of sulfide ore processing were conducted. The activities were designed to stabilize the ore processing volume and technological parameters, as well to stabilize the work of the processing plant and to increase the level of metal yields. Currently, the works are oriented towards the development of the mine based on the first investment phase along with actions aimed at optimizing the process line as a result of which the production capacities are to be increased. The Sierra Gorda Oxide project aims to process the oxide ore. Under consideration is the recovery of metal in an installation using SX/EW technology. The oxide ore is currently stored for later leaching. In 2017, works relating to the evaluation of alternative project development scenarios, which would enable the reduction of the required capital expenditures, were continued.

Location: Region II , Chile
Type of mine: Surface
Main ore type: Copper ore
Associated metals: Molybdenum, gold, silver
Main life:  25 years for the current deposit based on phase I of the project, along with the elimination of bottlenecks. Additionally, it is possible to extend exploitation, including new deposits. 
End product: Copper concentrate, molybdenum concentrate
Payable copper production in 2017:97.1 kt of copper concentrate, 35.7 million pounds of molybdenum concentrate – data for 100%, KGHM Polska Miedź S.A.’s share is 55%.

PDF Version

Download Integrated Report 2017