Strategy 2055+
of KGHM Polska Miedź S.A. Group
This ambitious plan addresses contemporary market challenges and trends in the raw materials industry. KGHM leverages its long-standing experience in deep mining and processing as a competitive advantage to further build value and dynamically develop the company.
DEEP EARTH INNOVATIONS
RESPONSIBLE MINING
KGHM Group Strategy based on the long-standing experience of employees, management team and board members. It was developed on the basis of a comprehensive analysis of current market conditions, an assessment of opportunities arising, amongst other things, from technological progress.
Ensuring operational continuity and financial stability is a priority. Maximizing efficiency within the KGHM Group is key to achieving audacious goals, and a comprehensive approach will provide the foundation for the Company's long-term development.
KGHM consistently strengthens its position as a diversified multi-commodity company, with a strategic focus on copper and critical metals. Our long-term objective is to ensure stable and profitable production beyond 2055. The foundation of this approach is the responsible management and development of our own resource base through exploration, deposit development, and the expansion of mining infrastructure, while taking into account increasing geological and energy-related challenges.
STRATEGY 2055+ aims to build organizational resilience through an integrated approach across the entire value chain. Operational and energy efficiency, automation, and digitalization are key elements that enable the Company to operate effectively within the long investment cycles characteristic of the mining and metals industry.
KGHM improves its international position through the exploration and acquisition of new foreign assets. Geological and operational diversification is intended to enhance the Company's production security on a global scale. In response to the growing importance of critical raw materials, KGHM relies on a strong domestic foundation combined with a flexible portfolio of international assets.
Each gram of copper carries innovation
Sustainable extraction for the next generation
Profitable extraction of raw materials with a view to the period after 2055
THREE COMPLEMENTARY AREAS
OF THE STRATEGY
Strengthening and developing the competences and business potential of the KGHM Group
Leveraging the competitive advantage derived from the unique mining and smelting expertise across the entire KGHM Group
Strategic directions:
- 1. Ensuring financial stability
- 2. Optimising operations and developing the potential of the Group's domestic companies
- 3. Growth in foreign assets
- 4. Ensuring succession and maintaining human potential in the organisation
Sustainable mining and smelting of copper and associated products
Maximising the potential of resources and ensuring their optimal development while maintaining the highest environmental and market standards.
Strategic directions:
- 1. Development and management of the domestic resource base
- 2. Ensuring long-term, efficient and flexible production
- 3. Management of production waste
- 4. Complying with the requirements of legislation and market standards
- 5. Coopering with local communities and other stakeholders
- 6. Development of metallurgical production
- 7. Energy transition
Expansion and development technology and innovation
Enhancing the KGHM Group’s product value and expanding the product portfolio in line with global megatrends and the current development directions of the mining and metallurgy industries
Strategic directions:
- 1. Extending the value chain with new products and services
- 2. Focusing on multiple raw materials, including critical metals
- 3. Innovation, development of new technologies, knowledge sharing
KGHM GROUP FOR ESG
THE KGHM GROUP’S SUSTAINABLE DEVELOPMENT PRIORITIES
The 2055+ Strategy places particular emphasis on sustainable development by incorporating comprehensive ESG (Environmental, Social, and Governance) initiatives that support long-term environmental protection, enhance social responsibility, and contribute to the delivery of stable financial performance.
Protection of biodiversity and sustainable management of natural resources
KGHM strives to minimise the environmental impact of its operations, focusing on protecting ecosystems and reducing its carbon footprint.
Creating safe and engaging workplaces
KGHM sees itself as a community of diverse people united by a common goal – the pursuit of a better future for present and future generations.
Using transparent, responsible management practices and processes
Management at KGHM is conducted in a way that ensures transparency, accountability and a balance between the interests of various stakeholders.
ENERGY POLICY OF
KGHM POLSKA MIEDŹ S.A.
Main directions of decarbonisation by 2030
Reduction of indirect Scope 2 emissions:
- Improving energy efficiency in production facilities and optimising technological processes
- Developing our own zero-emission and low-emission energy sources
- Purchase of zero-emission electricity under PPAs
Main directions for decarbonisation by 2050
Total reduction of indirect Scope 2 emissions:
- Electricity and heat exclusively from zero-emission and low-emission sources
Maximum reduction of direct Scope 1 emissions:
- Use of hydrogen, synthetic fuels and other zero-emission energy sources in the main technological line
- Implementation of advanced low- and zero-emission technologies in the main technological line
- Use of CCU and CCS technologies
Potential offsetting of remaining emissions
2030
reduction in CO2 emissions (Scope 2) by 30%1
2050
climate neutrality
1) Related to the volume of greenhouse gases generated indirectly as part of KGHM Polska Miedź S.A.’s business activities in 2020.
ROADMAP AND MILESTONES
of KGHM Polska Miedź S.A. Group Strategy 2055+
PROSPECTS FOR THE IMPLEMENTATION
of the 2055+ Strategy of KGHM Polska Miedź S.A. Group
Prioritities by 2030
- Improving the profitability of copper, silver and molybdenum mining
- Exploration of copper deposits and other raw materials
- Optimisation and transformation of smelting infrastructure
- Circular economy, water and waste management
- Climate Policy for the KGHM Group
- Optimisation of foreign assets
- Energy efficiency and development of RES
Prioritities until 2035
- Circular Economy, Recycling and Urban Mining
- Raw materials diversification
- Building expertise in the processing sector
- Continuing the energy transition
- Commencement of commercial production at the Victoria mine; increase in production at the Sierra Gorda mine
Priorities to 2055 and beyond
- A strong and balanced multi-commodity portfolio ensuring long-term stability
- KGHM 2.0 Production
- Expansion and extension of the Sierra Gorda mine’s life
- Climate neutrality (2050)
MAIN STRATEGIC OBJECTIVES
AND METRICS
Profitable extraction of raw materials with
a view to the period after 2055
The KGHM Polska Miedź S.A. Group Strategy 2055+ also includes well-thought-out and measured actions.
Within the scope of individual strategic directions, specific partial goals have been defined, the implementation of which will ensure the achievement of the long-term overarching goal.
Ensuring business continuity and financial stability will enable the implementation of ambitious production and environmental plans in the long term, even after 2055.
25,6%
KGHM Group’s EBITDA margin
Net profit on sales + depreciation added to sales revenue [%]
12 PLN billion Adjusted EBITDA KGHM Group
On an average annual basis for the period 2026-2030. The financial parameters incorporate KGHM’s 55% stake in Sierra Gorda SCM.
730+
Cu
Payable copper production in KGHM Group [in thousand tons]
Of which Copper production from recycled materials at domestic facilities: 180 kt
1290
Ag
Silver production [in tons]
4
Mo
Molybdenum production [in mln lb]
32+
PLN billion
Projected capital expenditure for 2026-2030
80% in domestic assets
20% in foreign assets
60%
Revenue from the sale of products that are more highly processed than copper cathodes as a proportion of total sales of electrolytic copper in the reporting year ending 2035
40%
Projected capital expenditure for development projects
min. 220
MW
An increase of at least 50% (to minimum 220 MW) of the capacity of KGHM's own electricity generation assets in 2030 relative to the capacity ordered by KGHM in 2025 (440 MW).
2%
Average annual share of expenditure on research and development as a proportion of expenditure on tangible investment in domestic assets in the years 2026–2030
min 75% including R&D in Main Technological Line
0
accidents
Accident rate LTIFR/TRIR
30%
Reduction in CO2 emissions at KGHM in 2030 (Scope 2)