Sustainable Report for 2018
How we create value
In KGHM we look at the process of creating value for our stakeholders through three perspectives: short, medium and long term. In the short term the factors of greatest importance for us are primarily operational efficiency, which we achieve under the existing business and measure through an integrated system of operational measures.
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.
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
and evaluation
enrichment
and refining
KGHM Business Model
Deposit managment
Deposit managment
Exploration and evaluation
Deposit managment
Mining
Deposit managment
Restoration
KGHM Business Model
Processing
Przetwórstwo
Ore enrichment
Przetwórstwo
Smelting and refining
Processing
Processing
KGHM Business Model
Sales
Sp. z o.o.
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.