In the medium term we create value by advancing our Strategy, concentrating on the adopted financial and non-financial Key Success Factors, acting on the basis of our competitive advantage and modifying – if necessary – our assets and value chain.

In the long term we create value by strengthening the foundations of Sustainable Development, transforming, developing our Capital and appropriately modifying our business model and value chain in such a way as to most effectively respond to the needs of all of our stakeholders, as well as to the existing and anticipated trends, conditions and challenges in our environment.

How we create value

Business model of KGHM Polska Miedź S.A.

GRI Indexes:

KGHM Business model

The KGHM Polska Miedź S.A. Group is a global, innovative organization involved in technologically advanced exploration, mining and smelting operations with a geographically diversified portfolio of mining projects. KGHM’s business model is divided into 7 segments through which the Group ensures a full value creation chain – from exploration to sales of finished goods.

KGHM Business
Model

KGHM’s activities is divided into 7 segments, through which the company provides a complete chain of value creation from exploration to the sale of finished products.
Exploration
and evaluation
Mining
Restoration
Ore
enrichment
Smelting
and refining
Processing
Sales

KGHM Business Model

Deposit managment

Deposit managment

Exploration and evaluation

Deposit managment

Mining

Deposit managment

Restoration

Exploration and evaluation
Mining
Restoration

KGHM Business Model

Processing

Przetwórstwo

Ore enrichment

Przetwórstwo

Smelting and refining

Processing

Processing

Ore enrichment
Smelting and refining
Processing

KGHM Business Model

Sales

The KGHM Group companies involved in the creation of value:
KGHM Zanam S.A.
PeBeKa S.A.
"Miedziowe Centrum Zdrowia" S.A.
Energetyka
Sp. z o.o.
Uzdrowiska Kłodzkie S.A. - Grupa PGU
NITROERG S.A.
POL-MIEDŹ TRANS Sp. z o.o.
Mercus Logistyka Sp. z o.o.
KGHM
International Ltd.

Production in KGHM Polska Miedź S.A. is a fully integrated process, in which the end product of one technological phase is the starting material (half-finished product) used in the next phase. Mining in KGHM Polska Miedź S.A. is performed by three mining Divisions: Lubin, Rudna and Polkowice-Sieroszowice. In the subsequent phase the Concentrators Division prepares concentrate for the smelters and refineries, while the Tailings Division is responsible for storing and managing the tailings generated by the copper ore enrichment process. The organisational structure of KGHM includes two metallurgical facilities: the Legnica Copper Smelter and Refinery and the Głogów Copper Smelter and Refinery, as well as the Cedynia copper wire rod plant.

KGHM Polska Miedź S.A., as part of its operations, is dynamically developing elements related to advancing the concept of a closed-circuit economy. Under development in our core business are questions related to recycling and the ever-better use of industrial waste as so-called secondary raw materials.

Building value throughout the entire chain requires an appropriate response by the KGHM Polska Miedź S.A. Group in terms of the organisation and conduct of management processes, focused on management principles and based moreover on strong ethical pillars.

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