Local content at KGHM: the domestic value chain and benefits for the Polish economy

For 65 years, KGHM Polska Miedź S.A. has been committed to cooperating with Polish companies, strengthening domestic expertise and shortening supply chains in key investment projects. Polska Miedź shared these experiences as part of a team set up by the Ministry of State Assets, whose aim was to develop the definition of local content announced today.

– Local content is a long-term investment in the capabilities of Polish companies and the security of our processes. Polska Miedź’s experience shows that consistent and long-term cooperation with domestic suppliers builds technological, operational and scientific infrastructure. This allows us not only to grow dynamically, but also to compete effectively on global markets. However, the benefits of local content are not limited solely to companies – they have a positive impact on the development of the Polish economy and the quality of life for each and every one of us. The best example is the Copper Basin, which is currently one of the wealthiest regions in Poland, said Remigiusz Paszkiewicz, President of the Management Board of KGHM Polska Miedź S.A.

The pillars of local content

The systematic approach to local content announced by the Ministry of State Assets is based on four pillars:

• Building the market position of domestic companies – integrating them into the supply chains of major investments and strengthening their strategic business and manufacturing capabilities.
• Strengthening security of supply in times of geopolitical tension – particularly in strategic sectors such as energy and defence.
• Long-term state procurement policy – public procurement supports economic growth.
• Support from a team of experts from key financial institutions – developing products to support businesses in their investments.

Local content at Polska Miedź

KGHM’s priority is to build a strong operational base that guarantees production continuity and supply stability. Close cooperation with Polish companies guarantees the predictability of supply, the efficient implementation of investments, and the development of modern technological capabilities available locally. The benefits of such an approach extend beyond the copper industry, strengthening the long-term competitiveness of the Copper Basin, Lower Silesia and the Polish economy.

One of the key companies cooperating with KGHM is PeBeKa, a member of the Capital Group, which has built all of Polska Miedź’s mine shafts (31 in total) throughout its history. PeBeKa currently employs over 2,300 people, and its staff carry out tasks on a daily basis including the drilling and modernisation of workings in KGHM’s mines. Together with the Cuprum Research and Development Centre, the company is also responsible for the largest mining investment in Poland in years – the construction of three new shafts: Retków, Gaworzyce and GG-2 ‘Odra’.  Implementation of these projects relies on the expertise and technology of Polish companies within the KGHM Group, which have been supporting Polska Miedź in comprehensive mining projects for decades.

In the field of mining technology and equipment, KGHM relies primarily on products from domestic manufacturers. KGHM ZANAM S.A. – one of Poland’s largest manufacturers of mining equipment – has, over the course of its history, supplied KGHM’s mining operations with over 2,100 self-propelled mining machines. KGHM’s key logistics partner, on the other hand, is Pol-Miedź Trans, a company belonging to the Group. It operates rail transport on domestic routes and on KGHM’s infrastructure and owns over 60 locomotives and approximately 1,600 wagons.

Thanks to investments realised with the participation of Polish companies, local content strengthens the national economic ecosystem, facilitates the organisation of supplies and reduces the risks associated with an extended supply chain. KGHM will consistently cooperate with domestic companies, combining operational needs with a commitment to the sustainable development of the Polish economy.