Significant contract with China Minmetals Corporation

Wednesday, 03 November, 2010
Report no. 31/2010

The Management Board of KGHM Polska Miedź S.A. announces that on 3 November 2010 a contract was entered into between KGHM Polska Miedź S.A. and China Minmetals Corporation for the sale of copper cathodes in 2011. 
The estimated value of this contract is from USD 424 893 500.00, i.e. PLN 1 202 321 136.95 to USD 849 787 000.00, i.e. PLN 2 404 642 273.90, depending on the amount of tonnage under option. This value was estimated based on the forecast copper price (using a forward curve) from 2 November 2010 and the USD/PLN exchange rate per NBP from 2 November 2010. 

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 with subsequent amendments)