Decision on the suspension of the project to build a gas-steam block at the Blachownia Power Plant

Monday, 30 December, 2013
Report no. 38/2013

The Management Board of KGHM Polska Miedź S.A., in reference to current report no. 46/2012 dated 5 September 2012, announces that on 30 December 2013, an agreement ("Agreement") was signed by KGHM Polska Miedź S.A., TAURON Polska Energia S.A. ("TAURON") and TAURON Wytwarzanie S.A. (a subsidiary of TAURON), based on which it was decided to temporarily suspend realisation of the project to build a gas-steam block in the company “Elektrownia Blachownia Nowa” Sp. z o.o. ("Project"). The cause of the suspension is the current situation on the electricity and natural gas market, resulting in increased investment risk and the consequent need to review and optimise the project.

Expressing their desire to continue the project to jointly build a gas-steam block through the company „Elektrownia Blachownia Nowa” Sp. z o.o., the Parties committed themselves to ensure the continued functioning of the company “Elektrownia Blachownia Nowa” Sp. z o.o. and to secure the results of the Project achieved to date, in particular to ensure that the documentation held is kept up to date, and additionally committed themselves to continued monitoring of the energy market and the regulatory environment, in terms of the possibility to rapidly re-commence realisation of the Project.

The Parties to the Agreement resolved that a decision to re-commence realisation of the Project will be made in the form of a separate agreement, which in accordance with the expectations of the Parties to the Agreement should be signed by 31 December 2016. 

Legal basis: art. 56 sec. 5 of the Act dated 29 July 2005 on public offerings and conditions governing the introduction of financial instruments to organised trading, and on public companies (Journal of Laws from 2009, No. 185, item 1439 with subsequent amendments).