KGHM Polska Miedz S.A.

KGHM Polska Miedz S.A., is a Polish copper and silver miner headquartered in Lubin. The Company is engaged in the following activities: non-ferrous metals ore mining; extraction of gravel and sand; production of copper; processing of precious and non-ferrous metals; production of salt; powder metallurgy; waste management; geological-exploratory activities; mining construction activities; generation and distribution of electrical energy, steam and hot water; generation of gas, and distribution of gaseous fuels through a supply network. Other activities include: professional rescue services; wholesale based on direct or contractual payments; warehousing and preservation of goods; activities related to financial holding associations; air transport; and telecommunications and IT services.

Kombinat Górniczo-Hutniczy Miedzi or Copper Smelting-Mining Factory was established in1961. Formerly state owned, KGHM was a multi plant company and included mines, smelters, refineries, and other service plants. Since 1991, KGHM operates as a joint stock venture while the Polish State Treasury still holds about 45 percent of it. After 1997, the Company has traded its shares on the Warsaw Stock Exchange under the symbol KGHM, and its Global Depositary Receipts are listed on the London Stock Exchange.

With 45- years of experience, KGHM is one of the global leaders on the copper market. Indeed, the miner is the nineth largest copper producer and the third largest silver producer in the world. On domestic level, KGHM is one of the largest Polish exporters: its production is offered on the local markets as well as exported to EU countries and China, among others.

The company’s primary product is copper of very high quality, certified by the London Metal Exchange. Other products of KGHM include gold, silver, lead, sulphuric acid, and rock salt. The company generates enormous profits, with 80 percent of its annual sales coming from copper operations, and nearly 15 percent from silver. The year 2007 set records in the production of electrolytic copper and metallic silver: 532,974 tons and 1 215 tons respectively. Above all, the miner reached record revenue of nearly PLN 3.8 billion.

At present, the Company owns copper ore deposit, three mining sites (Rudna Mine, Lubin Mine, and Polkowice-Sieroszowice Mine), two copper smelters (Lednica and Glogow Smelters), Ore Enrichment Plant, Cedynia Wire Rod plant, Tailings Plant, and several others supporting units. Approximately 18,000 thousand people are employed in the above facilities.

KGHM Polska Miedz S.A. has entered into agreement with 21 legal entities which are involved in various production and service-related activities such as the health services (MCZ S.A. – 100 percent of the shares); tourism (Interferie S.A. – 100 percent of the shares); and telecoms (Telefonia Dialog S.A. – 10 percent; Polkomtel S.A. – 26 percent of the shares), among others.