The Management Board of KGHM Polska Miedź S.A. announces that on 10 January 2009 two contracts entered into on 1 December 2003 by a subsidiary of KGHM Polska Miedź S.A. - “Energetyka” sp. z o.o. – and Polskie Górnictwo Naftowe i Gazownictwo Spółka Akcyjna (PGNiG S.A.) for the supply of natural gas for power-generation purposes to reception terminals in Żukowice and Polkowice (current report no. 58/2003 dated 3 December 2003) will be terminated.
The reason for termination is the inability of the parties to realise these contracts for the supply of natural gas under the terms set in the contracts, and to finalise the wording of a new contract for the supply of natural gas to KGHM Polska Miedź S.A.
No financial impact is expected from the termination of these contracts.
The parties, in accordance with agreed terms, “have taken steps to eliminate the causes of termination of these contracts or to mitigate the effects of early termination of the contracts”.
Final negotiations are underway between KGHM Polska Miedź S.A./”Energetyka” sp. z o.o. and PGNiG S.A. with respect to the signing of a new contract for the supply of natural gas, among others to the reception terminals in Żukowice and Polkowice. It was established that KGHM Polska Miedź S.A. will be the receiving party to the contract for natural gas.
Legal basis: § 5 sec. 1 point 5 of the Decree of the Minister of Finance dated 19 October 2005 regarding current and periodic information published by issuers of securities (Journal of Laws from 2005 No. 209, item 1744)