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EIB supports key technological investments in Polish copper industry

A more efficient copper industry in Poland and Europe, with state-of-the-art technologies and reduced environmental impact  – this is the aim of a modernization plan undertaken by KGHM Polska Miedz (KGHM), a Polish blue-chip company and the sixth largest world copper producer, which the European Investment Bank (EIB) is spearheading with a PLN 900m loan (ca. EUR 212m). 

The EIB loan will help KGHM to replace end-of-life equipment and machinery and to implement  actions to address the challenges of a changing macroeconomic environment (reduction in commodities prices), varying mining and extraction conditions (deeper lying deposits) and tightening environmental legislation (reduction of noxious emissions). Thanks to upgraded technologies, the company will be able to increase its productivity, competitiveness and further grow its business both in Poland and worldwide. 

“The loan granted to KGHM Polska Miedz provides evidence of the EIB’s support to Polish and European manufacturers and raw material producers”, said the European Investment Bank’s Vice-President Vazil Hudak, who is in charge of Poland. “This is in line with the European Union’s renewed Industrial Policy Strategy and its aim to secure a sustainable and affordable supply of raw materials, like copper, which is widely used in a high number of key industries”.

“The funds obtained from the EIB will be used to finance ongoing investment projects involving the development and the replacement of equipment.

Investments  related to development include the deployment of new infrastructure at various stages of the production chain, starting from ore mining and processing, through the smelting process, to copper electrorefining,” says Radosław Domagalski-Łabędzki, President of the Management Board of KGHM Polska Miedź S.A. “On the other hand replacement projects are aimed at modernizing the production process, including replacing machines in the machinery park as well as equipment withdrawn from use to ensure the Company's production capacity is maintained. We want to improve productivity, work safety and ensure the protection of the environment,” says President Radosław Domagalski-Łabędzki.

The EIB has agreed to finance up to 50% of the total project cost, which is estimated at PLN 1.934,00 m (ca. EUR 448,7m). The project will be implemented over the period 2017-2021 and will cover the main mining and production sites of KGHM in Poland, with a positive impact on both the environment and on current and future employment in the region.  As the largest employer in the lower Silesia region, KGHM has a high economic and social relevance. 

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