KGHM silver certified by the London Base Metals Exchange

The copper giant is one of the world's most trusted silver producers. KGHM Polska Copper S.A. has been certified for the next consecutive year by the London Base Metals Exchange (LBMA) for responsible silver production in 2022. The certificate confirms Polish Copper's compliance with the requirements set out in the LBMA Responsible Silver Guidance and allows it to gain entry to the LBMA's prestigious Good Delivery list of the world's most trusted silver producers.

- The highest quality of both the product and the entire production process is the strength of the KGHM brand. Our customers know that we are a trusted partner who adheres to the highest standards throughout the supply chain. The LBMA certificate confirms that it is not a matter of declarations, but of actual actions - said Tomasz Zdzikot, CEO of KGHM Polska Miedź S.A.

EXORBITANT STANDARDS

The LBMA's guidelines for responsible sourcing of gold and silver are designed, among other things, to combat human rights abuses and the financing of terrorism, avoid supporting military conflicts and ensure compliance with the highest possible anti-money laundering standards. The guidelines recommend the use of a five-step, risk-based supply chain examination procedure, in line with the OECD Guidelines for a Responsible Supply Chain for Minerals from Conflict and High-Risk Areas.

As part of the certification process, an attestation service by an independent, LBMA-accredited auditing firm (PricewaterhouseCoopers Poland) was required. A positive assessment of KGHM's procedures for the production, storage and sale of silver, as well as of the Policy and Procedure for a Responsible Supply Chain for Gold and Silver of KGHM Polska Miedź S.A. provided the basis for the auditor's positive recommendation to award the certificate.

SILVER MARKET LEADER

KGHM has been on the podium of global silver producers for years. According to the World Silver Survey 2023, it ranks first in the list of "largest silver mines in the world". In the category of "largest silver producers", the copper giant was ranked second. Polish Copper produced 1,298 tonnes of silver in 2022.

KGHM sells silver in the form of pig sow and granulate. Silver customers include, among others, financial institutions, the jewellery industry, the electronics and electrical industry, the photovoltaic industry, catalyst manufacturers and coin, bar and medal producers. Around 16% of the copper giant's revenue comes, precisely from the sale of silver.

FROM BLACK MUD TO SHINY PIG SOW

Silver production at KGHM is carried out at the Głogów smelter, in the Precious Metals Division. PMD was established exactly 30 years ago specifically to recover the precious metals - silver and gold - present in the copper ore. These are found in the so-called 'black mud', i.e. the anode slime produced during the electrorefining of copper. From cathode silver with an Ag content of more than 99.99 per cent, metallic silver is produced in the form of granules packaged in 25 kg bags and pig sows of approximately 1,000 troy ounces, which amounts to about 31.1 kg.