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

Strona główna

The future is copper

In 2021, KGHM Polska Miedź S.A. celebrates its 60th anniversary.


Copper as a key raw material for the energy transformation

KGHM points out that copper is a key raw material for the implementation of the idea of a climate-neutral Europe, which is why it is so important to support the mining and metallurgical industries


Excellent results despite the difficult market environment

In 2020, we recorded the highest level of operating profit of the Group since the acquisition of foreign assets.

Summary of the

In 2020 KGHM was one of few companies in the industry to overcome the macroeconomic crises, achieve the assumed goals and close the year with a satisfactory financial result. The corporate strategy for 2019-2023 and the involvement of employees in its implementation, sanitary discipline, flexibility in decision-making – all these factors impacted our performance level. Today, we can be proud of our excellent results in the areas of finance, development, environmental protection or power generation, and most importantly, in safety and prevention of the effects of COVID-19.

Marcin Chludziński
President & CEO KGHM Polska Miedź S.A

Global player

The KGHM Polska Miedź S.A. Group holds geographically diversified mining assets (mines of copper ore and accompanying elements, such as silver, molybdenum, nickel, gold and other precious metals).

Our assets located:

  • Poland
  • USA
  • Chile
  •  Canada
thousand t
Production of payable copper KGHM POLSKA MIEDŹ S.A.
thousand t
Production of payable copper in the Sierra Gorda mine
thousand t
Production of payable copper KGHM INTERNATIONAL

Key results

Since the outbreak of the pandemic, there have been no production downtime in KGHM Polska Miedź S.A. or in any of the Group’s foreign mines. In the segments of KGHM INTERNATIONAL LTD. and KGHM Polska Miedź S.A. there was a slight decrease in production by 9.6 thous. t and 5.2 thousand. t of payable copper.

Production of payable copper [thous. tones]

thous. t
Production of payable copper in the KGHM Group

EBITDA exceeded PLN 6.6 billion, which is 27 percent. more than in the previous year. KGHM recorded very good sales results in the Group. This translated into 4 percent. annual revenue increase to PLN 23.6 billion.

EBITDA [PLN million]

EBITDA increase compared to 2019

The idea of sustainable development, and in particular respect for the environment, is one of the most important principles determining the Company’s activities.

PLN million
issued in 2020 by the KGHM Company for the implementation of pro-ecological investments

Strategy Areas

We conduct a rational management of deposits and extraction, and we have optimized metallurgical production.

We have introduced a new, long-term financing structure. Our significant achievement is increasing the production of electricity from our own sources. Thanks to well-thought-out HR programs, we effectively counteract the phenomenon of the generation gap. We expand the competences of our employees through adaptation and development projects. We also performed a thorough review of foreign assets.

Our response to the growing competition in the manufacturing and mining industries, and industry 4.0.

Domestic mining production has reached 450 thousand tonnes. tonnes of Cu in the excavated material. We increased the production capacity and the ability to process foreign materials in Huta Miedzi Legnica (WTR furnace). We develop the Group’s competences in the field of energy development, primarily renewable energy sources. We effectively obtain financing from external sources for the implementation of R&D projects. We are achieving success in increasing the effectiveness of financing thanks to the diversification of sources and adjustment of financing to the needs of the Group.

We rely on electromobility, the development of pro-ecological regulations, the Circular Economy and pro-ecological production in accordance with the highest safety standards.

Our success is the improvement of safety indicators both in Poland and abroad. We fully use the potential of employee volunteering as part of the „Copper Heart” initiative. Income from the KGHM Group to the state budget and local budgets from CIT (KGHM Group) amounts to approximately PLN 400 million per year. The revenues to the state budget from the tax on certain minerals amounted to approximately PLN 1.5 billion annually. Our new installations are built in accordance with BAT (Best Available Techniques) conclusions for the non-ferrous metal industry. We invest in renewable energy sources (RES), electromobility (tests of electric passenger cars and off-road vehicles) and low-emission solutions.

We implement the idea of Industry 4.0, move towards automation and robotization of production lines, carry out the digital transformation of the KGHM Group, and build a knowledge-based society.

We have implemented a pilot version of the „System for locating people and machines in underground workings”. We are continuing the development of „Broadband data transmission in underground workings”, „Center for Advanced Data Analysis (CZAD)”, „Robotization of production and auxiliary processes”. As part of the last of the above-mentioned initiatives, we started the construction of a CuXRF robot to scan the copper content in the face. A new company in the Group – KGHM Centrum Analityki in Zielona Góra – started research and development in the Big Data area with the intention of analyzing industrial processes.

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