Signing of a Letter of Intent with the company Grupa Azoty S.A.

Thursday, 16 January, 2014
Current report no. 3/2014

The Management Board of KGHM Polska Miedź S.A., announces that on 16 January 2014, a Letter of Intent was signed between KGHM Polska Miedź S.A. and the company Grupa Azoty S.A. with its registered head office in Tarnów, hereafter referred to jointly as the „Parties”, setting forth the general principles for the eventual undertaking of joint business activities in the following areas: processing of phosphogypsum, exploration for potassium salt deposits abroad, gaining access to sources of natural gas, construction of a polygeneration power plant, and exploration for and extraction of phosphorite (the „Areas of Cooperation”).

The Parties foresee that cooperation within the Areas of Cooperation is not based on the principle of exclusivity, and make take one of the following forms:

  • commercial and operational cooperation based on detailed agreements between the Parties or entities comprising individual capital groups of the Parties and their eventual partners, or
  • the establishment of joint venture companies with participation by the the Parties or entities comprising individual capital groups of the Parties and their eventual partners („JV Company”), with the reservation that the Parties may decide to undertake specified actions through a separate company, whose sole partner would be the JV Company. 

Legal basis: Art. 56 sect. 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 (unified text: Journal of Laws from 2013, item 1382).