KPMG verifies the publication concerning Capex on the Sierra Gorda project

KPMG has provided the Company with clarification related to publication of erroneous data on the Capex for the Sierra Gorda project. Representatives of KPMG assure that they will update the quarterly “Q3 Commodity Insights Bulletin”, where the correct details will be published. 

Tuesday, 11 December, 2012

The clarification is related to the Capex on the Sierra Gorda project in Chile, estimated by KGHM at about USD 3 billion. Publishing its information on the construction costs of the mine, KPMG incorporated in the Capex the costs of subsequent expansion of the processing capacities of the ore cleaning facility and the replacement costs for 20 years of functioning of the mine. Accumulation of the data and a comparison with incomparable data from other global mining projects has misled the public opinion. 

KGHM’s spokesperson issued a special statement in this matter (7.12.2012). Yesterday the Company received information from KPMG clarifying the error. Additionally, KPMG promised to update the quarterly “Q3 Commodity Insights Bulletin” in which it will present the initial capital outlays concerning the Sierra Gorda project. 

Communications Department 
KGHM Polska Miedź S.A.