An agreement with China Minmetals Corporation

KGHM Polska Miedź S.A. and China Minmetals Corporation have signed a framework agreement for the sale of copper cathodes from 2017 until 2021.

Monday, 20 June, 2016

The estimated value of the agreement ranges from 1 178 110 500,00 USD (4 562 115 100,20 PLN) to 2 827 565 000,00 USD (10 949 462 706,00 PLN), depending upon on the level of the quantity option. The value of the agreement was estimated.

“The framework agreement proves our mutual satisfaction with the cooperation. China Minmetals Corporation is our key partner in the Chinese market.  Our co-operation potential is growing each year,” Krzysztof Skóra, President and the CEO of KGHM Polska Miedź S.A., noted. “In terms of value, this is our largest mutual agreement in history. KGHM Polska Miedź S.A. is already on the New Silk Road.”

This is the fourth agreement between KGHM Polska Miedź S.A. and China Minmetals Corporation. The first was signed in 2002.

“Last year, three contracts were made, based on the framework agreement for the years 2012–2016. Their value exceeds 10 percent of our equity, which proves the agreement’s importance. Contrary to what is often heard, the copper consumption in China is growing, and we hope to benefit from that process,” Jacek Rawecki, the First Vice-President of KGHM Polska Miedź S.A. for Supply Chain Management, stated.

A group of China Minmetals Corporation representatives, with Mr. He Wenbo, the company’s Chairman of the Board, is now in Poland, at the invitation of the Management Board of KGHM Polska Miedź S.A. The guests have visited, among others, the Polkowice-Sieroszowice mine.