Founding of special purpose company „Elektrownia Blachownia Nowa” sp. z o.o.

Tuesday, 04 September, 2012
Report no. 46/2012

The Management Board of KGHM Polska Miedź S.A. announces that on 5 September 2012, KGHM Polska Miedź S.A. and TAURON Wytwarzanie S.A. (hereafter „Shareholders”), founded a special purpose company called „Elektrownia Blachownia Nowa” sp. z o.o. with its registered head office in Kędzierzyn Koźle („Company”). 

This Company was founded in order to fully realise an investment, comprising the preparation, construction and operation of an 850 MWe gas–steam block on grounds belonging to TAURON Wytwarzanie S.A. - Blachownia Power Plant Division („Enterprise”). The founding of this Company was preceded by the receipt of approval of the anti-monopoly body, i.e. the European Commission, issued on 23 July 2012.

The share capital of this Company amounts to PLN 65 152 000. Each of the Shareholders acquired a 50% interest in the share capital. The shares of this Company are equal and indivisible.

Together with the founding of this Company, a Shareholders Agreement („Agreement”) was signed, regulating the detailed principles of cooperation between the parties in regards to realisation of the Enterprise. Under the Agreement, the Shareholders foresee that the total estimated expenditures on this investment will amount to around PLN 3.5 billion. The project will be realised using project finance - at least 50% of its budget will be financed by external sources.

The design and construction of the gas–steam block will be in the form of a turnkey project, together with infrastructure, instalations and auxiliary equipment. The block will be connected to the new 400kV switching station, providing electricity to the National Electricity System, and will meet all of the standards set forth in the Transmission Network Operation Instructions. In accordance with the approved schedule, the block will be commissioned in the second quarter of 2017.

The founding of this Company is in accord with the Strategy of KGHM Polska Miedź S.A., assuming diversification of sources of revenues through progressive engagement in the energy sector. 

Legal basis: Art. 56 sec. 1 point 1 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).