The Management Board of KGHM Polska Miedź S.A. announces that on 30 July 2010 a comprehensive contract was entered into for the purchase of fuel gas („the Contract”) with Polskie Górnictwo Naftowe i Gazownictwo SA.
The Contract involves the purchase of natural gas for power generation purposes – to supply two Gas-Steam Blocks in Głogów and Polkowice, each of 45 MWe, in the target amounts of 266 million m3 annually. KGHM Polska Miedź S.A. plans to commence this investment in the fourth quarter of 2010.
The fuel gas will be supplied through the distribution network of Wielkopolska Spółka Gazownictwa Sp. z o.o.
The Contract is in force from the date of its signing to 30 June 2033, with the possibility of agreeing the date of commencement of deliveries between 1 July 2012 and 31 December 2012. The estimated value of this contract is approx. PLN 4.0 billion.
The maximum value of contractual penalties may exceed 10% of the value of the Contract, while its amount depends on the amount of gas ordered and not taken into possession by KGHM Polska Miedź SA. The Contract does not contain any provisions which would foresee the possibility of seeking additional compensation above the amount of these penalties.
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).
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