Together for Poland's raw material security - KGHM and Lubelski Węgiel Bogdanka signed a letter of intent on cooperation

In the letter the parties declare that they will undertake cooperation in various forms, depending on their needs and capabilities, with particular attention to the assumptions contained in their business strategies. The companies will work together and flexibly adapt to the situation, follow developments and adapt technologies to global changes, and seize new business opportunities to build competitive advantages for both companies.

Energy and raw material security is not just an economic issue. It is currently a key national security issue. Therefore, KGHM is ready to dialogue with local partners to ensure the stability and independence of our country. The agreement with Bogdanka has one goal: to create strong economic foundations for future generations, providing them with certainty of supply of essential raw materials and energy

said Tomasz Zdzikot, President of the Management Board of KGHM Polska Miedź S.A.

The transition of Poland's energy sector is not only a necessity, but also a huge challenge and opportunity for Poland. KGHM is a natural partner for Bogdanka when it comes to implementation of mining projects for the raw materials of the future. Through this cooperation, we can not only work toward a sustainable transition, but also strengthen our independence in the supply of critical raw materials and renewable energy production. Bogdanka pursues its strategic goals with full commitment and with the conviction that by doing so it contributes to Poland's energy security and the sustainable future of our country

said Kasjan Wyligała, President of the Management Board of Lubelski Węgiel Bogdanka S.A.

The signing of the letter of intent with KGHM is an important step in the context of the future of Poland's energy security and is another element in the implementation of our strategy. The search for critical raw materials is becoming increasingly strategic, and our cooperation with KGHM, a leader in the raw material mining industry, will allow us to effectively approach this challenge. The realization of our common goals in the field of raw materials and energy has a direct impact on the independence of our country and its development

said Dariusz Dumkiewicz, Vice-President of the Management Board for Sales and Investments at Lubelski Węgiel Bogdanka S.A.

Poland has deposits, the extraction of which is and will be the flywheel of the national economy in the years to come. Energy transition, electromobility, the defense industry - their functioning depends on the availability of the so-called raw materials of the future. KGHM has been the guarantor of Poland's raw material security for years. In order to strengthen it and open up to new business directions, we want to cooperate with other leaders of the Polish mining market, and LW Bogdanka is one such leader

said Mateusz Wodejko, Vice-President of the Management Board for Financial Matters at KGHM.

The signatories of the letter declare, among other things, their willingness to cooperate closely in identifying and analyzing the possibility of joint investment projects regarding new mining projects in Poland for raw materials of the future. The detailed rules on the planned projects will be presented in separate agreements. 
Both KGHM and Lubelski Węgiel Bogdanka intend to pursue mutual benefits related to the further development and strengthening of the Polish industry, allowing them to achieve their strategic goals and meet market demands.
In 2023 KGHM is executing its development plans, including the Deposit Opening Project, involving the launch of Poland’s deepest mine working: the 1348-m deep GG-1 shaft. The shaft in Kwielice is one of the most important investments in the copper giant's history and the largest underground non-ferrous metals project in Europe. In June, the shaft was connected with the Rudna Mine, which is key for this project.

In addition, the first work on KGHM's 32nd shaft, GG-2, has begun. The shaft yard is being built near the village of Słone in the Copper Belt. 
The copper giant has embarked on a feasibility study for the construction of a modern Saltwork. The project has both business and environmental nature. It will reduce the salinity of KGHM's process water and produce environmentally neutral water free of salt and contaminants. Due to the availability of technical and power utilities, the saltwork is to be built next to the Głogów Copper Smelter.
KGHM is also continuing work on the execution documentation for the Scrap Trading Base in the Legnica Hybrid Smelter program, as well as exploration projects in Poland and development projects in foreign assets. It is also working to increase energy production from its own sources, including RES projects associated with solar and wind energy, and hydrogen.
The copper giant is also pursuing an energy development program, reducing the share of conventional energy and increasing the company's energy independence. This includes investment plans related to, among other things, the energy transition. The Ministry of Climate and Environment has issued a decision in principle for KGHM to build a small modular nuclear power plant (SMR) in Poland. KGHM has thus obtained official state approval for the planned investment project in accordance with the assumptions and concept presented by the company.

KGHM has also commissioned an environmental and carbon footprint analysis for its products: cathodes, wire rod and Cu-OFE wire. The Mineral and Energy Economy Research Institute of the Polish Academy of Sciences performed analyses in accordance with ISO standards and prepared environmental declarations. KGHM's copper products have a footprint lower than the global average.