KGHM POLSKA MIEDŹ S.A.
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A company with a strategy

 

Mission and vision of KGHM

KGHM Polska Miedź S.A.’s mission is the “Effective processing of natural resources as a way to increase the Company’s goodwill”. The Company’s vision is to join the group of large global copper manufacturers by increasing the production of this metal to approximately 700 thousand tonnes annually.


STRATEGIC GOALS

KGHM Polska Miedź S.A.’s strategy for 2009–2018 was approved by the Supervisory Board on 23 February 2009. It includes activities grouped into five main areas.

 

Enhancing effectiveness – stopping the growth of unit production costs

 

Key activities in this area assume:

  • investments in new technologies, inter alia, mechanical extraction of ores, automation of the process of ore enrichment and construction of a new flash furnace in the Głogów I smelter,
  • modernisation of the existing infrastructure, inter alia, replacement of mining machinery and modernisation of the Głogów II smelter,
  • optimisation of processes and production organization, including, inter alia,: centralization of purchases, development and implementation of an IT system for managing exploitation of the deposit, and also intensifying preparatory work underground.

 

Development of the resource base so as to enable an increase of the production of copper concentrate up to approximately 700 thousand tonnes annually

 

KGHM Polska Miedź S.A. takes several actions aimed at increasing access to the raw material resources in Poland and worldwide, in particular:

  • development of the system of mining deep ores which comprises further work on management of the Głogów Głęboki – Przemysłowy deposit, and also developing a system for mining ores more than 1 200 m deep,
  • foreign investments in mining assets, inter alia, projects in Canada (Ajax-Afton),
  • exploration of new deposits in the region, including in the area of Radwanice-Gaworzyce in Poland and Weisswasser in Germany, and also exploration work on areas next to the Company’s deposits,
  • intensifying the processing of scrap.

 

 

Diversification of sources of revenue and gradually gaining independence from changes in energy prices
As a target, KGHM Polska Miedź S.A. wants to increase the share of sources of revenue other than the core activities to approximately 30%, inter alia, by investing in the power generation industry. This involves, for example, construction of gas-steam blocks in Powerplants in Głogów and Polkowice, which are to satisfy 25% of the Company’s demand for electric power, cooperation with industry partners in the construction of a coal power plant, and tackling the issue of wind power. The Company would like to achieve a 3% share in the energy market in Poland. Other sources of income are to become tourist and healthcare services. A subsidiary, KGHM TFI, in 2011 established the Polish resort group: Polska Grupa Uzdrowisk – KGHM TFI. It owns, inter alia, the following resorts and spas: Zespół Uzdrowisk Kłodzkich, Uzdrowisko Świeradów-Czerniawa, Uzdrowisko Połczyn and Uzdrowisko Cieplice. The Fund plans to participate in the privatisation of subsequent Polish resorts.

Support for the region

 

KGHM Polska Miedź S.A. wants to continue its active involvement in the regional community by:

  • creating workplaces and developing regional entrepreneurship, inter alia, using the infrastructure of KGHM Letia S.A.,
  • protecting the environment, providing healthcare for employees and local people, supporting sports, development of culture and science in the region.

 

Development of organizational skills and effectiveness

 

The purpose of the changes is introducing the mechanism of managing through targets, staff development programmes and creating a transparent holding structure.

According to the assumptions of the Company, investment outlays on the implementation of strategic projects in 2009–2018 will amount to approximately PLN 19.8 billion. Implementation of the strategy will improve the cost competitiveness of the Company in the short term. As a result of the implementation of the strategy, KGHM Polska Miedź S.A. will become an international copper holding with diversified sources of income, which will make the Company independent of the fluctuation of copper prices.

Report on shortcuts
Jan Kochanowski (1530­-1584) – poet and playwright of the Renaissance period, graduate
of the Kraków Academy and the Universities of Koenigsberg and Padua, secretary to
King Zygmunt II August of Poland. Considered one of the most outstanding authors of the
Renaissance in Europe and the most eminent Slav poet who contributed to the development of the Polish literary language.
*Translation:
Teresa Bałuk-Ulewiczowa, Ph.D.
Insitute of English Philology
Jagiellonian University in Kraków