Statement of the Management Board of KGHM

With reference to the letter of the Enterprise Commission of the ‘Solidarity’ Trade Union of the Legnica Copper Smelter addressed to the Minister of State Assets, Mr. Jakub Jaworowski, and to the media reports that have appeared, the Management Board of KGHM Polska Miedź S.A. declares that:

It is not true that KGHM Polska Miedź S.A. is planning group redundancies at the Legnica Copper Smelter. The Legnica smelter is an important and growing production asset of the Company, and its technological transformation into a Hybrid/Recycling Smelter is an important element of KGHM's investment plans. The company also has no plans to reduce electrolytic copper production levels at this plant. The transformation of the smelter that is currently underway is intended to adapt its process line to future market conditions and realise the growth potential that comes with recycling copper scrap. The technological changes will have a positive impact on the working conditions and will not result in redundancies.

As part of the first stage of transformation of the process line of the Legnica Copper Smelter, a high-grade copper scrap melting unit was built. Ultimately, it will be supplemented by a Scrap Trading Facility, the task of which will be to prepare feedstock material for smelting at, among others, the Legnica Copper Smelter. The company is also planning investments that will relieve the smelter workers of the heaviest physical work. Due to the development and modernisation of the production processes, some employees will be moved to newly created jobs within the copper scrap recycling process. However, these issues are clearly communicated to the Legnica Copper Smelter’s crew and the trade unions at KGHM Polska Miedź S.A. Other ongoing investments concern the Copper Electrorefining Division. The new measures will improve occupational health and safety, and increase the production capacity of the smelter. The investment is scheduled for completion at the end of 2026.

A key element of the smelter’s transformation is the selection of a new dedicated smelting unit (furnace) for melting copper scrap. The Legnica Copper Smelter is currently in advanced discussions with two leading steel companies to select the most optimal furnace to be commissioned at the smelter by 2030. In addition to maintaining the current capacity, the new unit will provide greater batch flexibility and is in line with environmental policy as well as current market trends. The remaining pyrometallurgical plant, i.e. the converters and anode furnaces, and the Lead Refining Division remain in their current form.

The transformation to a Hybrid/Recycling Smelter will create additional jobs in the smelter's surroundings. A Scrap Trading Depot will be established at the smelter, which will provide feedstock and create several dozens of jobs. At the same time, work is underway at the Legnica Copper Smelter to create, in cooperation with Pol-Miedź Trans, a Transhipment Terminal from rail to truck transport, which will also create new jobs. The new investments will guarantee the stable operation of the smelter for decades to come, making the Legnica Copper Smelter a modern and environmentally friendly production facility.

We regard the aforementioned letter as an attempt to manipulate public opinion and stir up unjustified social unrest among the Company's staff and environment. At the same time, we ask for issues related to KGHM Polska Miedź S.A. not to be used for current political purposes and the ongoing election campaign.