A multi-commodity industrial group and record-breaking investments. The 2055+ Strategy sets out the direction for the development of the KGHM Polska Miedź Group

The KGHM Polska Miedź S.A. Group’s Strategy 2055+ envisages a record investment programme worth over 32 billion by 2030 and the maintenance of an EBITDA margin at 25.6% on average per annum between 2026 and 2030. It sets out the direction for Polska Miedź’s development as a modern, diversified multi-commodity group with a growing share of its own energy sources. The strategy focuses on investments in the domestic mining base and the Main Technological Line, as well as on the selective strengthening of the portfolio of overseas assets and the energy transition. Of key importance in this respect is the development of modern technologies, artificial intelligence and innovation, which will support the Group’s operational efficiency and financial stability in the long term.

The 2055+ Strategy aims to maintain the KGHM Capital Group’s position among the world’s leading producers of copper and silver, not just in the coming years. Our ambition is to strengthen our global position in the long term. As part of our plans up to 2035, we are accelerating the energy transition by developing modern production technologies and consistently extending the value chain. The priority will be to strengthen our capabilities and develop the business potential of the entire Group. After 2035, we want KGHM to be a modern, multi-commodity industrial group, said Remigiusz Paszkiewicz, President of the Management Board of KGHM Polska Miedź S.A. We are planning to build a new mine – KGHM 2.0. This will be an independent, modern production line in new mining areas. We will also continue to develop our strategic projects in Chile, the USA and Canada. We are seeking new acquisition opportunities in other locations. We have the courage to look further ahead than others. The future will belong to those who are able to act consistently, think long-term and take responsibility for what they are building, added President Paszkiewicz.

The 2055+ Strategy sets out the direction for KGHM’s continued development as a modern, multi-commodity industrial group, capable of creating value throughout the entire value chain – from mining to higher-value-added products. It combines an investment and operational perspective, strengthening the Company’s long-term resilience to market volatility whilst ensuring value growth for shareholders and other stakeholders.

Creating value for stakeholders

The long-term development direction set out in the 2055+ Strategy translates into specific operational and financial targets. Between 2026 and 2030, the Company aims to maintain average annual payable copper production within the KGHM Group at over 730,000 tonnes per annum, including approximately 180,000 tonnes from recycling at domestic assets, as well as silver production at 1,290 tonnes per annum. Other key objectives include increasing the share of revenue from higher-value-added products to around 60% of electrolytic copper sales by the end of 2035, maintaining average annual adjusted EBITDA at PLN 12 billion and an EBITDA margin of 25.6%, as well as consistently improving health and safety at work.

An integral part of the 2055+ Strategy is a multi-year investment plan worth over PLN 32 billion for the period 2026–2030. Around 80% of this amount will be allocated to projects implemented in Poland, covering the development of the Main Technological Line, the construction and expansion of mining infrastructure, the modernisation of steelworks, and investments in energy and innovation. The remainder, meanwhile, will be directed towards the development of key foreign assets, including projects in Chile, the USA and Canada. Around 40% of the expenditure is expected to be allocated to development projects supporting improved profitability, the extension of the value chain and the development of new production capabilities.

The energy transition and climate protection remain key pillars of the 2055+ Strategy. By 2030, KGHM intends to reduce Scope 2 CO₂ emissions by 30%, increase the capacity of its own electricity generation assets to at least 220 MW, and further improve energy efficiency across its production facilities. The long-term goal remains climate neutrality by 2050, supported by the development of the company’s own zero-emission and low-emission energy sources, the procurement of zero-emission energy through PPAs, and the implementation of low-emission technologies in the Main Technological Line.

The new Strategy also reinforces the role of research and development as a tool for supporting the Group’s competitive advantages. Expenditure on R&D will be focused primarily on addressing the challenges associated with the Main Technological Line, including the automation and autonomisation of production processes, the development of a smart mine, a new mining system and a digital working environment for operators. In addition, the Company will allocate funds to projects and innovations that open up new avenues for business development.

Responsible financing and cost discipline

The 2055+ Strategy is based on a detailed market analysis, including rising metal mining and production costs, regulatory pressures and challenges related to access to capital. The response to these conditions is a long-term approach to financing growth, combining an ambitious investment programme with cost discipline and improved efficiency. The Cost Optimisation Programme and further operational improvements play a key role here, aimed at increasing margins, developing higher-value-added products and strengthening resilience to market volatility. This approach is designed to finance the largest investment programme in KGHM’s history whilst maintaining stable financial foundations.

We are seeing a rise in the costs of metal mining and production worldwide. There are several reasons for this: increasingly challenging geological and technical conditions, geopolitics, the depletion of resources, as well as regulatory pressure and environmental requirements. That is why we are building a long-term, responsible capital-raising strategy, which is supported by cost-optimisation measures. Consequently, this will allow us to finance new projects, including the launch of KGHM’s largest-ever investment programme, said Piotr Krzyżewski, Deputy President of the Management Board for Finance at KGHM Polska Miedź S.A.

Record-breaking investment in the Main Technological Line

One of the cornerstones of the 2055+ Strategy is the development of the resource base and infrastructure of the Main Technological Line. The priority is to ensure a stable foundation for mining operations in the long term. Measures related to the commissioning of new concession areas and the expansion of mining facilities are of key importance, to maintain a high level of production whilst ensuring workplace safety and economic viability. Particular emphasis has been placed on projects to improve operational efficiency, including the modernisation of plant, the development of a new mining system, process automation and better utilisation of geological data.

We are at a crucial moment in terms of investment. The decisions we will make today will ensure KGHM’s economically optimal, long-term operations for the coming decades. That is why we are focusing on developing our resource base and expanding the infrastructure necessary to commence mining in new concession areas. Technological development, diversification of raw materials, the energy transition, closer cooperation with the scientific community and start-ups, and the utilisation of our own achievements and know-how are the directions we wish to follow, said Zbigniew Bryja, Vice-President of the Management Board for Development at KGHM Polska Miedź S.A.

Strengthening the position of foreign assets

Foreign assets remain a key element in building KGHM’s long-term resilience and global position. The 2055+ Strategy assumes further streamlining of the project portfolio and a focus on those assets that best support the Group’s economic, competence and development objectives. This approach is based on selection, optimisation and investment discipline, as well as on seeking new opportunities where they can genuinely enhance KGHM’s value and reduce exposure to market risks. The strategy covers the development of the Sierra Gorda mine in Chile, the optimisation of the Robinson mine’s life cycle in the USA, and exploration and development projects underway in Chile, Canada and the USA.

We want the position of our foreign assets to grow, as this builds the Company's global credibility and resilience to the structural changes currently taking place on the market. We will achieve this by optimising the projects in KGHM’s portfolio and by acquiring assets whose potential aligns with our long-term objectives. We are seeking new opportunities to build our capabilities and diversify risk. We are doing this through detailed efficiency analyses, rather than being driven solely by the need for expansion. Our goal is clear – we will strengthen KGHM’s position as a global leader in the production of metals that are key to the energy transition and digitalisation, said Anna Sobieraj-Kozakiewicz, Vice-President of the Management Board for Foreign Assets at KGHM Polska Miedź S.A.

Multi-raw material strategy and production development

The new strategic directions assume that the implementation of the investment programme will support not only the development of new projects, but also an increase in the efficiency of core production activities. Particularly important here are the modernisation of infrastructure, the development of processing, the automation and autonomisation of processes, and better utilisation of the domestic raw material base. Another key element of this approach is increasing the share of higher-value-added products and strengthening those areas of activity that directly impact the Group’s margins and operational stability. KGHM’s priority will also be put towards systematically expanding its product range to include raw materials of significant importance to the Polish and European economies. It is precisely these measures that will strengthen KGHM’s production foundations in the coming years and support the further development of the entire value chain.

We have developed a clearly defined and comprehensive development strategy that will allow us to manage the domestic raw material base responsibly and effectively implement solutions in both mining and smelting. We are planning to construct new shafts, modernise our smelters towards greater automation, and expand wire rod production. We also want to cooperate more extensively with Polish suppliers and develop our own production capabilities, said Mirosław Laskowski, Vice-President of the Management Board for Production at KGHM Polska Miedź S.A.