KGHM POLSKA MIEDŹ S.A.
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Good neighbour


KGHM wants to be a good partner for local governments and the inhabitants of the areas in which it operates, therefore it runs several pro-social projects.

 

The discovery of copper ore deposits and the development of the Legnica-Głogów Copper Belt (LGOM) caused a huge population influx. Before beginning their exploitation in 1960, Lubin had a population of 3.5 thousand, the population of the ruined Głogów was even smaller, and the population of the whole of today’s Legnica-Głogów Copper Belt (LGOM) was 187 thousand. By 1994 the figure had risen to 520 thousand, of which Lubin alone accounted for 85 thousand (in early 2011: 74 thousand), Legnica for 106 thousand (2011: approx. 100 thousand), Głogów, rebuilt after the war, for 74 thousand (in early 2011: approx. 68 thousand), and Polkowice, built almost from scratch, for 22 thousand (2011: approx. 22 thousand, as well). The majority of infrastructure investments (new housing estates, roads, cultural facilities, hospitals and outpatient clinics, sports facilities, holiday resorts in other parts of Poland) were carried out by KGHM, whose number of employees peaked in the 1980s at 43 thousand. Including family members, more than one fifth of the population of the LGOM were associated with the Company.

In the 1980s, Kombinat Górniczo-Hutniczy Miedzi also developed education in the region, establishing mining, smelting, economic and medical schools. The following became part of KGHM: the Mining School Complex in Lubin and three technical secondary schools: a mining secondary school in Lubin and smelting secondary schools in Głogów and Legnica. Witelon University of Applied Sciences in Legnica and some faculties at the Legnica Regional Branch of the Wrocław University of Technology were established thanks to the Company. In 2002, the Copper Belt Technical College in Lubin and the Lower Silesian College of Enterprise and Technology in Polkowice welcomed their first students. KGHM Polska Miedź S.A., as transformed into a joint-stock company 100 per cent owned by the Treasury in September 1991, supports around 100 thousand people in the region, including those employed by the Company, its subsidiaries and business partners.

 

Taxes paid by KGHM Polska Miedź S.A., in PLN thousand 2010 2011
Corporate income tax 1 267 287.26 2 204 067.70
Corporate income tax on dividend paid 34 162.02 174 412.16
Dividend paid to the Treasury 190 769.70 947 489.51
Social security (ZUS), of which: 710 473.50 752 620.12
ZUS premiums payable by the employer 344 337.98 365 387.37
ZUS premiums payable by the employee 366 135.52 387 232.71
Personal income tax 223 001.42 236 051.25
Excise duty 51 633.60 53 102.31
Real property tax 131 978.52 133 687.02
Minerals extraction tax 67 986.65 72 935.82
Waste storage fee 3 468.84 3 711.69
Environmental fee 23 236.74 21 767.06
Fee for perpetual usufruct of land 7 211.81 7 720.22
PFRON (Found For the Disabled) 14 504.36 15 808.46
Irrecoverable VAT 1 924.86 9 660.43
Other fees 793.63 2 696.51
Total 2 728 433.97 635 730.32

 

 

In 2003, the Company established the Polska Miedź Foundation (more details can be found further on in this chapter) to fulfil its corporate social responsibility objectives in a more professional and effective way. In order to promote sports among young people and the general population of the Copper Belt, the Company sponsors the Zagłębie Lubin football club and several handball clubs: MKS Zagłębie Lubin, SPR Chrobry Głogów, and MSPR Siódemka Legnica (more details can be found further on in this chapter). The Company also promotes job creation and competence development in the region by working together with local job centres, running adaptation programmes for secondary school graduates, working together with universities and technical schools or providing internships (more details can be found in Section 1 of this chapter). By sponsoring many important cultural, scientific or sports projects, KGHM Polska Miedź S.A. meets the community’s expectations. The Company also maintains an active dialogue with local governments, e.g. on the expansion of mines. The Legnica and Głogów region owes its position on Poland’s business map in many respects to KGHM Polska Miedź S.A. Real property tax revenues of the gminas alone were PLN 131m and PLN 133.6m in 2010 and 2011, respectively. Local governments also receive a share of CIT (in 2011, the Company paid PLN 2.2 billion in corporate income taxes) and PIT remittances (in 2011, the Company’s employees paid PLN 236m in personal income taxes). As a consequence, some of the richest Polish gminas are located in the Copper Belt (Rudna, Polkowice). Salaries are the highest here, education, culture and sport are thriving. Many aspect of living in the region are steadily improving thanks to direct or indirect support from KGHM Polska Miedź S.A.

Act globally, think locally

The immediate neighbourhood of KGHM Polska Miedź S.A. is the Copper Belt and – from a slightly wider perspective – Lower Silesia. However – due to the Company’s international expansion – its neighbourhood is expanding as well. Since May 2010, it has also included local communities in Canada. In pursuit of the key objective of its strategy for the years 2009 to 2018, which is to expand the resource base and mining production, the Company, together with Abacus Mining & Exploration Corporation, its Canadian business partner, established a joint venture with a majority KGHM Polska Miedź S.A. interest. The joint venture is intended to mine copper and gold from the Afton-Ajax deposit located in British Columbia. With the acquisition of Quadra FNX, a Canadian mining company, the concept of “good neighbourhood” was extended even further with KGHM becoming the owner of mines in Canada, the US, and Chile.

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