KGHM Resources and Reserves Report

The development of the resources base is the first pillar of KGHM’s Strategy for the years 2015–2020, with an outlook to the year 2040. It is also essential to KGHM’s global activities in the long term.

Gaining access to copper resources has been the foundation of KGHM’s development over the last sixty years. Thanks to the effective exploration and sustainable mining of these resources, we managed to become a global and well-diversified leader in the industry. The mineral resources, presented in the report, secure KGHM’s international business for decades to come - asserted Herbert Wirth, President of the Management Board of KGHM.

Due to a transparent and unified methodology, the report presents the scale and development potential of KGHM’s portfolio of projects, which is the basis for the company’s core business.

The report has been prepared according to the standards and definitions of the Canadian Institute of Mining, Metallurgy and Petroleum, described in the document NI 43-101. Together with the Australian JORC standard, it serves as one of the two leading international standards of reporting resources - confirmed Prof. Adam Piestrzyński, the independent expert who verified the report.

The report presents the resources and reserves as of December 31, 2014. The main figures include:

• 22.6 million tonnes of copper in proven and probable ore reserves;
• 44.6 million tonnes of copper in measured and indicated mineral resources (the measured and indicated resources include the proven and probable ones).

Lower grades of metal in ore and a higher number of projects in unstable jurisdictions are the key tendencies and long-term perspectives for the copper industry. KGHM has access to some of the largest copper resources in the world, ones that are both rich in terms of metal content and are located in geopolitically safe regions. This is KGHM’s important competitive advantage in the global industry - explained Maciej Koński, Executive Director of the Business Development Centre at KGHM.

As outlined in its corporate strategy, KGHM’s objective is to replace each tonne of mined copper with three tonnes of documented copper reserves. This will secure the company’s long-term ability to operate. To meet this aim, KGHM has planned the largest exploration campaign in Poland’s history as well as an exploration program around the Sierra Gorda mine in Chile. The result of this work will translate into an increase in resources, which we plan to present in upcoming editions of the report.

Department of Communications and  CSR