KGHM begins work on a Cost Optimisation Plan to increase profitability

The Management Board of KGHM Polska Miedź S.A. is starting intensive work this week on preparing and implementing a Cost Optimisation Plan aimed at increasing the company's investment capacity in the coming years. The Management Board's priority is to further improve the efficiency of core business processes and optimise them from a cost perspective.

 ‘As the Management Board, we are obliged to constantly look for opportunities to optimise both efficiency and costs. The current macroeconomic conditions, copper price levels and ongoing discussions on a possible change in the copper tax formula, create favourable conditions for an intensification of investment activities. Our goal is to increase the long-term resource base of domestic assets, which are the future of KGHM’, said Andrzej Szydło, President of the Management Board of KGHM Polska Miedź S.A. ‘In terms of staffing, our main focus will be on increasing labour efficiency rather than on cost issues, which have been solved’, he added.

The company will focus on improving efficiency through business process optimisation and development investments. The first phase of the review will cover areas including purchasing, technology, waste recovery, water management and others to be identified in the near future.

KGHM is of key importance to the Polish economy and Europe's largest producer of copper, considered a strategic resource for the European Union. It accounts for almost 50% of the EU’s mined copper production.