The Management Board of KGHM Polska Miedź S.A. announces that on 11 August 2006 a contract was entered into between KGHM Polska Miedz S.A. and KGHM Polish Copper Ltd. (a subsidiary of KGHM Polska Miedź S.A.) for the purchase of copper-bearing materials in 2006. The estimated value of this contract is USD 37 139.1 thousand (PLN 111 547.4 thousand). This amount was estimated based on the anticipated copper price and the amount of recoverable metal in material, as well as on the National Bank of Poland exchange rate from 10 August 2006. This contract foresees contractual penalties for failure to execute payments on time.
The total value of contracts entered into between KGHM Polska Miedź S.A. and KGHM Polish Copper Ltd. since the last current report related to contracts entered into with KGHM Polish Copper Ltd. (2/2006 dated 6 January 2006), is estimated at PLN 727 167.1 thousand.
The highest-value contract was signed on 25 May 2006 and relates to the purchase of copper-bearing materials (white matte). This contract was estimated at PLN 134 232.1 thousand.
The criteria used for describing the contract as significant is that the total estimated value of the contracts exceeds 10% of the equity of KGHM Polska Miedź S.A.
Legal basis: § 5 sec. 1 point 3 of the Decree of the Minister of Finance dated 19 October 2005 regarding current and periodic information published by issuers of securities (Journal of Laws from 2005 Nr 209, item 1744)