KGHM signs Farm‑Out Agreement with Minera Freeport-McMoRan South America Limitada to advance cooperation on a high‑potential copper exploration opportunity in Chile

KGHM Chile SpA, a subsidiary of KGHM Polska Miedź S.A. (“KGHM”), has signed a Farm‑Out Agreement with Minera Freeport‑McMoRan South America Limitada, a subsidiary of Freeport‑McMoRan Inc. (“Freeport”), initiating cooperation on a high‑potential copper exploration opportunity located in northern Chile. The agreement provides a structured framework for conducting early‑stage exploration activities and evaluating the geological potential of the area.

Positioned within one of Chile’s most prospective copper regions and supported by encouraging geological and geophysical indicators, the area offers strong potential for early‑stage assessment.

- Our cooperation with Freeport marks an important milestone in expanding KGHM’s exploration presence in Chile. The area selected for evaluation offers compelling geological indicators, and we look forward to jointly assessing its potential. Combining the strengths of both organizations enhances our ability to identify projects that may contribute to our future growth - said Anna Sobieraj-Kozakiewicz, Vice President of the Management Board at KGHM Polska Miedź S.A.

A framework with room to evolve

Under the Farm‑Out Agreement, KGHM Chile will carry out the early‑stage exploration activities required to evaluate the area’s geological characteristics. Depending on results, the agreement includes the possibility of advancing and forming a joint venture company to develop the opportunity further.

KGHM is one of the world’s largest producers of copper and silver. In Chile, KGHM provides specialized services to the mining industry, with strong expertise in exploration and geology. KGHM’s flagship project in Chile is the Sierra Gorda operation, a large‑scale copper and molybdenum mine, located in the Antofagasta region. KGHM holds a 55% ownership stake in Sierra Gorda SCM, while the remaining 45% is owned by the Australian company South32 Ltd.