Integrated Report of KGHM Polska Miedź S.A.
and the KGHM Polska Miedź S.A. Group
for 2020

Innovation ecosystem

KGHM Polska Miedź S.A. intends to be an innovation leader in Poland and internationally. As an international corporation KGHM is obligated to pursue broad research and development activity. Innovation is one of the competitive advantages of the KGHM Polska Miedź S.A. Group.

The development of technology and raising the level of innovation are very important for KGHM. We are building our future on the basis of e-industry. The implemented solutions include robotisation, digitisation, knowledge management and targets for the 4.0 industry, including data mining, building a consistent supply chain, energy savings and safety. The KGHM 4.0 Strategic Program includes nearly 50 projects. We undertake work on cutting-edge technologies, which will change the method and nature of mining copper in the future.

Adam Bugajczuk
Vice President of the Management Board (Development)

KGHM consistently increases the knowledge it has accumulated over 60 years of its activity. Its success is based on rich tradition as well as on innovation. The Company continuously seeks technologies to help it, reduce production costs, enable higher rates of recovery of copper and associated metals or contribute to higher productivity. The Company is committed to the safety of its employees and protection of the natural environment.

In 2023, KGHM Polska Miedź S.A. intends to allocate 1% of the Company’s annual revenue towards innovation and research and development projects, which amounts to nearly PLN 200 million. This constitutes a significant increase of R&D expenditures, which currently are at approximately PLN 40 million per annum.  The Company focuses on improving the quality of the tasks it performs and the results it achieves. The main stream of R&D finance and innovation is directed to activities of the core production business (at least 75% in the 2019-2023 period), which have a higher implementation or commercialisation potential. KGHM has in place a consistent management model for innovation and research and development work.

The development of technology and raising the level of innovation are very important for the Company. The projects undertaken by KGHM focus on developing new copper ore mining systems in deep deposits as well as efficient technologies for their processing and for producing end materials. Actions are also taken to increase automation of mining processes, develop energy-efficient technologies or reduce the environmental impact of the mining industry.

The Company is building its future on the basis of e-industry. The implemented solutions include robotisation, digitisation, knowledge management and targets for the 4.0 industry (including data mining aimed at better utilisation of machinery and equipment, building a consistent supply chain, energy savings and safety). KGHM does not only promote projects that can be implemented in the short term. The company is not afraid of ambitious challenges and is undertaking work on cutting-edge technologies, which may change the method and nature of copper production in the future.

KGHM grows by combining the experience and intellectual potential of its employees with external research entities, businesses and institutions. The Company uses its resources and funds efficiently, creating value and building its image as a global leader in the mining industry.

Key activities in the Innovation area in 2020:

  • Continuation of activities within the CuBR project co-financed by the NCBR (National Centre for Research and Development). R&D projects with the total value exceeding PLN 180 million are pursued. So far, 25 projects have been launched in four editions of the competition.
    • Currently, 15 projects are being pursued.
    • 8 projects were completed.
    • 2 projects were halted since it was impossible to implement the research results.
  • The Implementation Doctorates Program was continued for 38 doctoral students (KGHM employees) from two editions of the program.
  • Initiatives concerned with testing battery electric self-propelled mining machines are implemented.
  • The project of building a self-driving robot for measuring copper content at the working faces in the mines was launched as part of the project to robotise production and auxiliary processes.
  • Projects subsidised under KIC Raw Materials:
    • The execution of the subsidised research projects was continued.
    • A subsidy for “The Reflux Flotation Cell Technology RFC” project concerning intensification of the recovery of grains of useful minerals was obtained.
  • Projects co-funded by the Horizon 2020, the EU Scientific Research and Innovation Framework Programme:
  • Launched the “Development of monitoring systems for buildings” project, in which the Group intends to test machine learning and artificial intelligence in the systems monitoring the condition of the Żelazny Most Tailings Storage Facility.
  • Obtained a subsidy of EUR 753 thousand for the execution of the project entitled “Smart management of mining production 2” to develop and implement innovative solutions aimed at improving the efficiency and safety of works in underground mining processes using state-of-the-art technologies.
  • Obtained protection for the “KGHM” word trademark notified in the international procedure in the territory of: the USA, Switzerland, Ukraine, Japan, India and Turkey.
  • Registered the “KGHM” figurative trademark with the Canadian Intellectual Property Office.
  • The protection of the “KGHM” figurative trademark in the European Union was extended.
  • Filed applications for patents for 3 inventions.
  • The patent procedures for 5 inventions are pending in the Patent Office of the Republic of Poland.
  • More than 70 new invention projects were acquired as part of the Invention Market 2020 in KGHM Polska Miedź S.A.

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