Business strategy

The consistent advancement of the Strategy of KGHM Polska Miedź S.A. adopted in 2018 enabled the KGHM Group to take advantage of favourable macroeconomic trends to increase the scale of its activities as well as to substantially improve its production results and financial condition. As a result of the substantial changes which have occurred in the world during this time, the strategic assumptions were reviewed and refreshed. The decision to update the Strategy was dictated in particular by:

• macroeconomic changes of strategic importance for the mining sector, in particular those arising from the green transformation,
• the need to clarify the Company’s actions as regards the commencement of decarbonisation and commitments to protect the climate,
• a focus on securing access to the raw materials base for future copper production, but also actions aimed at developing mining capacity in terms of other metals and mineral resources,
• the intensification of actions aimed at the implementation of innovation in the production process,
• the identification of opportunities to gain competitive advantages and to develop the Company in new, promising business areas.

The justification for this review and redefinition coincided with an extraordinary market situation driven by the SARS-CoV-2 epidemic. Despite the fact that KGHM was exceptionally successful compared to other companies on the market during this difficult time, the desire to maintain its flexibility requires an update for plans regarding the future. The result of the Company’s work is the Strategy to the year 2030 with an outlook to 2040. The Company’s mission and vision remained unchanged.

To reflect the changes in the general environment, the four existing strategic development directions (Flexibility/elasticity, Efficiency, Ecology and E-industry) were updated to include a fifth element – Energy.

This „5E” Strategy is now comprised of 5 pillars based on 5 updated development directions.

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