The EIB loan will help KGHM to replace end-of-life equipment and machinery and to implement actions to address the challenges of a changing macroeconomic environment (reduction in commodities prices), varying mining and extraction conditions (deeper lying deposits) and tightening environmental legislation (reduction of noxious emissions). KGHM’s copper ore deposits are also important as key raw material for Europe. Thanks to upgraded technologies, the company will be able to increase its productivity, competitiveness and further grow its business both in Poland and worldwide.
“The loan granted to KGHM Polska Miedz demonstrates the EIB’s support for Polish and European manufacturers and raw material producers”, said EIB Vice-President Vazil Hudák, responsible for Poland. “This is in line with the European Union’s renewed Industrial Policy Strategy and its aim to secure a sustainable and affordable supply of raw materials, like copper, which is widely used in a high number of key industries.”
“The funds obtained from the EIB will be used to finance ongoing investment projects involving the development and the replacement of equipment. Investments related to development include the deployment of new infrastructure at various stages of the production chain, starting from ore mining and processing, through the smelting process, to copper electrorefining,” says Radosław Domagalski-Łabędzki, President of the Management Board of KGHM Polska Miedź S.A. “On the other hand replacement projects are aimed at modernizing the production process, including replacing machines in the machinery park as well as equipment withdrawn from use to ensure the Company's production capacity is maintained. We want to improve productivity, work safety and ensure the protection of the environment,” says President Radosław Domagalski-Łabędzki.
The EIB has agreed to finance up to 50% of the total project cost, which is estimated at PLN 1 934m (ca. EUR 448.7m). The project will be implemented over the period 2017-2021 and will cover the main mining and production sites of KGHM in Poland, with a positive impact on the environment and employment in the region. As the largest employer in the lower Silesia region, KGHM has a high economic and social relevance.
About the EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
KGHM Polska Miedź S.A. is a global and innovative company that has been conducting advanced geological, mining and metallurgical activities for over 55 years. KGHM is one of the top producers of copper and silver in the world. It boasts a geographically diversified portfolio of mining projects. Its facilities are located on three continents – Europe, the North and South America. The operations are carried out in accordance with the highest environmental standards and regulations. The achievements in the field of corporate social responsibility are widely recognized, wherever KGHM manages its activities. The most precious capital of KGHM are the employees.
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At a Glance
A brief overview of KGHM