Who we are, the scope of our operations, the application of copper
We are the largest company in Poland and one of the leading companies in the world active in the exploration and extraction of non-ferrous metals. We have nearly 60 years of experience in the mining and processing industry. In Poland we operate one of the largest copper deposits in the world thereby ensuring continuity of production for many upcoming decades. Abroad, our assets are located in Europe, North America and South America. In addition to copper, we also produce silver, gold, molybdenum, lead and rock salt, among others.
For decades we have enjoyed the reputation of being a reliable business partner. We are appreciated for being innovative in our daily activities and for consistently pursuing a sustainable development policy.
KGHM Group:
The cohesion of such a complex organization is built on a set of common values – safety, cooperation, focus on performance, accountability and courage. These values have guided the company for nearly 60 years, demarcating the direction of its development and how it operates on the international market.
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, nickel, gold, platinum, palladium,
- manufacturing of goods from copper and precious 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 accompanying copper ore,
- recycling.
The activity of the KGHM Group with respect to exploration and exploitation of copper and nickel ore and precious metals deposits is based on the concessions held by KGHM Polska Miedź S.A. for exploitation of deposits in Poland and the legal titles held by companies belonging to the KGHM INTERNATIONAL LTD. Group for exploration and extraction of raw materials in the USA, Canada and Chile.
KGHM Polska Miedź S.A. is a multi-branch company, comprised of the Head Office and 10 Branches: 3 Mines (Lubin Mine, Polkowice-Sieroszowice Mine, Rudna Mine), 3 copper smelters (Głogów Smelter, Legnica Smelter, Cedynia Smelter), Ore Processing Plants, Hydrotechnical Facility, Mine-Smelter Emergency Rescue Unit and the Central Information Processing Unit.KGHM Polska Miedź S.A.’s shares have been listed on the Warsaw Stock Exchange since 1997. The Company’s core business is:
- mining of copper ores and non-ferrous metal ores,
- production of copper, precious and non-ferrous metals.
The Company’s organizational structure as at 31 December 2017
Our raw materials
The metals we mine form the foundation for developing the global economy, while the multitude of their applications make it possible for billions of people across the world to lead better lives every day.
COPPER
In 2017 the KGHM Group produced 656.4 thousand tons of payable copper.
Contemporarily, copper is indispensable to live. It is helpful in the supply of electricity and pure water to homes and residential units and is making a material contribution to persistent and sustainable development. For centuries this metal has been present in the history of human progress. In the KGHM Group we are confident that copper’s unique properties make it an invaluable part of the future, while its significance for global development will grow. Energy efficiency, renewable energy sources, smart power grids and electrification of transport are merely some of the areas in which the role played by copper will expand, simultaneously make it possible to pursue sustainable development in the global economy.
| Payable copper | kt |
|---|---|
| Group | 656.4 |
| • KGHM Polska Miedź S.A. | 522.0 |
| · KGHM INTERNATIONAL LTD. | 81.0 |
| · Sierra Gorda S.C.M.* | 53.4 |
*The Group has a 55% equity stake.
Usage of copper:
- electronics and power
- industry, healthcare
- design and art
- agriculture and breeding,
- transport,
- telecommunications,
- maritime science.
SILVER
In 2017 the KGHM Group produced 1,234.1 thousand tons of payable copper.
From year to year silver is finding ever more applications in modern technologies. As one of the best conductors of electricity and heat, it is the ideal metal for various electricity-related applications, e.g. switches, ceramic condensers, specialist conductive adhesives and films in heated car windows. Silver is also used as a coating material for optical data media, including DVD, as well as in the production of solar panels and mirrors. Silver is widely used in the jewellery and photography industries, too, and by the minters of coins and medals. Silver is increasingly more frequently being employed in medicine because of its natural anti-bacterial properties
| Silver | t |
|---|---|
| Group | 1 234.1 |
| · KGHM Polska Miedź S.A. | 1 218.1 |
| · KGHM INTERNATIONAL LTD. | 1.6 |
| · Sierra Gorda S.C.M.* | 14.4 |
*The Group has a 55% equity stake.
GOLD
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 troz
Gold is used in the production of industrial fixtures, in electronics, the jewellery industry and it is treated as a way to invest capital. It is also a way to hedge the real value of paper money (approximately 75% of the extracted resources currently discharge this function). Every year, roughly 9% of the global demand for this metal is linked to applications in new technologies, for the most part in the electronics industry. Gold’s superb conductivity and its resistance to corrosion mean that it is the natural choice for the manufacturers of high-class components. Moreover, this metals excellent bio-compatibility means that it can be utilized in dentistry. Gold is also used in the cosmic industry and in fuel cells. Its catalytic properties are also starting to attract the attention of the automotive industry as an alternative to the traditional metals used in catalytic converters
MOLYBDENUM
In 2017 we produced 20 million pounds of molybdenum.
From year to year, we are taking an ever stronger position on the global market for molybdenum – a very hard metal with a silver and white hue. Molybdenum is more and more frequently being employed by the world’s developing and developed economies alike. Most of the molybdenum produced (65%) is an input in the steel industry – its use in alloys superbly augments its resistance to high temperature and corrosion. When used in a steel alloy, it strengthens it and provides for its endurance in high temperatures (up to 1,900°C) while acting as an anticorrosive. These alloys are used in the air industry, the petrochemical sector, transport and in the construction of pipes. Molybdenum is also utilized in the chemical industry as an additive to grease, a fire resistant material or as a pigment in paints. This material is also used in diet supplements, i.e. multivitamins – the human body contains roughly 0.07 milligrams of molybdenum per kilogram of mass.
| Molybdenum | mn pounds |
|---|---|
| Group | 20 |
| · KGHM Polska Miedź S.A. | - |
| · KGHM INTERNATIONAL LTD. | 0.7 |
| · Sierra Gorda S.C.M.* | 19.7 |
*The Group has a 55% equity stake.