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KGHM ZANAM wins on the Russian market

KGHM ZANAM wins on the Russian market

Thursday, 24 June, 2021
Company ZANAM VOSTOK - a subsidiary of KGHM ZANAM of KGHM Polska Miedź S.A. Group, registered in 2016 and operating in the Russian Federation - submitted the best bid for the supply of specialised mining machinery for Russian conglomerate PAO Gaiski GOK (Ural Mining and Smelting Conglomerate). This is yet another success for the copper giant on the Russian market.

"Expansion on foreign markets by the companies of the KGHM Group is part of our strategy. Our mining machinery manufacturer KGHM ZANAM fits in perfectly with these assumptions. The company has won a major contract on the German market and has now been the best bidder on the Russian market. We will supply Polish loaders and drilling rigs there," said Marcin Chludziński, President of the Management Board of KGHM Polska Miedź S.A.

The contract signed by ZANAM VOSTOK concerns the supply of a total of 12 mining machines to the Russian company. This includes: three ŁK1 loaders for Uczaliński GOK mine, eight loaders of the same type for Gai GOK mine and one SWW-1/1H drilling rig for Gai GOK mine. Deliveries will be made in 2022, except for one LK1 loader for Uczalinski GOK mine. In this case, at the special request of the foreign contractor, the machine will be delivered to him later this year.

All the mines mentioned belong to the mining holding company UGMK. It is the largest producer of copper and zinc in the Russian Federation. Each subsequent contract signed brings the cooperation between ZANAM VOSTOK and the Russian holding company to a higher level. Business relations with UGMK holding company confirm KGHM's strong brand on foreign markets for machinery and specialised mining equipment.

"In May this year we announced that we were finalising business negotiations with our Russian counterpart and we are satisfied that the relevant signatures were put on the contracts so quickly, despite many difficulties in conducting business activity resulting from the COVID-19 pandemic," says Bernard Cichocki, President of the Management Board of KGHM ZANAM S.A. "Another contract won on the Russian market shows that the decision to create a subsidiary ZANAM VOSTOK was the right one. In the case of the contract that has just been signed, our products competed in an open tender and proved to be the best. It should be emphasised that the most important criterion in the tender procedure was not only the price, but above all, the quality of the machines," emphasises Bernard Cichocki.

In May 2020, the KGHM Group company operating in Russia signed a contract to supply ten machines to Gaiski GOK mine: six ŁK-1M loaders and four SWT-3K transport trucks. In turn, earlier in February 2019, a contract was signed for the supply of nine LK-1M loaders. Machines were also delivered to Gaiski GOK mine.

KGHM ZANAM has also been a trusted business partner of the German mining holding K+S AG for several years. In April, a contract was signed for the delivery of 13 wheeled articulated loaders to Germany.

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