The Management Board of KGHM Polska Miedź S.A. announces that on 29 May 2009 a purchase-sale contract was entered into between KGHM Polska Miedź S.A. as buyer, Salobo Metais S.A. as seller and Companhia Vale do Rio Doce as guarantor, for copper concentrates in years 2012 – 2016 with an automatic extension option for the next five years.
The estimated value of this contract in the first five years in which it will be in force is from USD 639 007 273, i.e. PLN 2 071 533 776, to USD 968 882 139, i.e. PLN 3 140 922 118, depending on the amount of tonnage under option. This amount was estimated based on the forecast price of payable metals (using a forward copper curve and silver and gold prices from 28 May 2009) and the National Bank of Poland exchange rate from 28 May 2009.
This contract foresees contractual penalties for failure to execute payments on time.
The criteria used for describing the contract as significant is that the estimated value of the contract 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 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (Journal of Laws from 2009 No. 33, item 259)