Summary of 2021


Summation of the year in the KGHM Group

Selected key statistics in 2021*

[mn PLN]

Profit for the period
[mn PLN]

C1 net

Net debt/EBITDA

[Polish assets]

* Consolidated data unless otherwise indicated, i.e. in the case of LTIFR – only KGHM Polska Miedź S.A.
** Sum of segments; adjusted EBITDA = EBITDA (profit/(loss) on sales + depreciation/amortisation) adjusted by impairment losses on non-current assets

We care, we act, we protect

  • Vaccinations
  • Educational programs
  • Combatting depression
  • Transports of medical supplies
  • Overnight accomodations for those in need
  • Help in transporting and feeding refugees
  • Legal, psychological and medical assistance

Employee safety as a strategic priority for the KGHM Group 2021

Occupational Health and Safety Management System Certificate.

A decrease of 23% (y/y) in the number of recognized accidents at work from 213 to 165 registered at the end of 2021.

Historically-low accident ratio

Once more KGHM’s employees met the challenge. In 2021 we again achieved excellent results in Occupational Health and Safety. Despite the threat caused by the SARS CoV-2 virus pandemic, thanks to the mutual efforts and commitment of our employees, the number of workplace accidents decreased from 213 in 2020 to 165 at the end of 2021. The main decrease was in accidents caused by human error.

Accident ratios*
Change** LTIFR
in KGHM Polska Miedź S.A
Change** TRIR

* LTIFR (Lost Time Injury Frequency Rate); TRIR (Total Recordable Incident Rate) calculated using accepted methodology as the number of accidents at work meeting the conditions of registration as defined in the International Council on Mining & Metals standard, in total for the employees of KGHM INTERNATIONAL LTD., KGHM Chile SpA and Sierra Gorda S.C.M. and sub-contractors for these entities, per 200 000 worked hours
* Average accident rate for 2021 compared to the average for 2020

Strategy of the KGHM Polska Miedź s.A. Group to the year 2030 with an Outlook to 2040

While the Mission and Vision of KGHM remain unchanged, in order to reflect the changes in the general environment, the strategic directions were augmented by a fifth element – Energy.

To always have copper

To use our resources efficiently to become the leader in sustainable development

Ecology, safety
and sustainability

Key elements of the strategy advanced in 2021

  • Stable, uninterrupted production maintained in Poland and abroad despite the pandemic.
  • Stable copper production from the domestic assets: mined production 442.6 kt; metallurgical production 577.6 kt).
  • Stable payable copper production from the international assets: Sierra Gorda 104.4 kt (55%); Robinson 53.6 kt; Carlota 5.5 kt; Franke 10.7 kt; Sudbury Basin 1.9 kt).
  • Continuation of projects aimed at automatisation under KGHM 4.0
  • Continuation of digital transformation under the KGHM 4.0 Program.
  • Optimisation of the international assets portfolio.
  • Actions aimed at increasing the participation of Group companies in building the value of KGHM.
  • Continuation of the Deposit Access Program (sinking of GG-1 shaft, slection of contractor to build the GG-2 shaft).
  • Continued development of the Żelazny Most Tailings Storage Facility (99% of physical work completed).
  • Continuation of exploration projects in Poland and development projects in the international assets (Victoria, SG Oxide).
  • 18.7% of KGHM’s need for electricity was supplied by its own generating sources.
  • Advancement of actions connected with increasing Energy generation from own sources, incl. RES; development of hydrogen technology (founding of Lower Silesia Hydrogen Valley) and nuclear (SMRs – agreement with NuScale, USA).
  • Continuation of work aimed at building a second Upcast line at the Cedynia wire rod plant.
  • Continuation of R&D projects under the CuBR venture and the Implementation Doctorates Program.
  • Advancement of initiatives related to testing EV mining machinery.
  • Continuation of projects subsidised under the Horizon Europe Framework Program and KIC Raw Materials.
  • Activities involving intellectual property (trademarks, patents for inventions).
  • Development of IT tools supporting management as regards R&D and Knowledge Management in the KGHM Group.
  • Continuation of the Program to adapt the Company’s production installations to BAT conclusions for the nonferrous metals industry and to restrict emissions of arsenic (BATAs).
  • Continuation of the Occupational Health and Safety Program (LTIFR: 5.63; TRIR: 0.32).
  • Adoption of the KGHM Climate Policy.
  • Conclusion of a project to implement a mine machinery anti-collision system – 100% completed.
  • Optimisation of the financing structure – more efficient management of liquidity.
  • Basing the KGHM Group’s financing structure on long-term instruments.
  • Optimisation of the receivables recovery period and the payables payment period.
  • Effective market and credit risk management in the KGHM Group.
  • Development and commencement of implementation of an integrated controlling model for the KGHM Group.

The KGHM Group’s strategy consists of 5 pillars based on 5 development directions

The financial situation of the KGHM Group remains stable and safe

* Sum of costs of extraction, floatation and metallurgical processing per cathode, together with support functions and cathode selling costs, adjusted by the value of inventories of half-finished products and work in progress, less the value of anode slimes and divided by the volume of electrolytic copper production from own concentrates
** Capital expenditures – excluding costs of borrowing, leasing per IFRS 16 unrelated with an investment project and development work – uncompleted; Other expenditures – acquisition of shares and investment certificates of subsidiaries and associates and loans granted
*** Adjusted EBITDA for 12 months, to the end of the reporting period, excluding EBITDA of the joint venture Sierra Gorda S.C.M.

Cash flow within the group in 2021 proceeds to KGHM Polska Miedź S.A.

The International Assets paid USD 532.4 million to KGHM Polska Miedź S.A.*

* all amounts are prior to taxation, excluding accrued WHT

A rationale and responsible investment program

mn PLN
CAPEX execution in 2021
mn PLN
CAPEX target for 2021

CAPEX execution in 2021

* excl. Leasing per IFRS 16

Environmental investments

Energy development program, including RES

Actions in 2021

  • Further permits are in the process of being obtained and design work is underway on the Obora Sandpit and HM Głogów I-III18 PV sites
  • An analysis of the connection possibilities for the EPV HM Głogów I-III site was prepared
  • Work is being finalised on developing a PV plant at the Cedynia Wire Rod Plant
  • Preparatory work commenced on another two PV power plants
  • The Company actively expresssed its opinions as regards municipal plans and studies
  • A structure was prepared in terms of acquiring external energy generation sources
  • 2 preliminary offers were submitted to acquire wind farms
  • An agreement was signed to develop nuclear power based on SMR technology
  • Preparatory work is underway to submit applications for the construction of offshore wind farms

The CCGT gas-steam blocks provided energy security as regards power supply in the case of a blackout, and steam heat for internal purposes of the core production business

******** The numerical designation HM Głogów I-III refers to the plot numbers

By 2030 the increase in share of RES will lead to a substantial reduction in CO2 emissions

Share of power source in supplies to KGHM Polska Miedź S.A.


Own generation sources covered 18.70% of KGHM’s total power needs in 2021.

Estimated CO2 emissions due to electricity consumption
[mn tonnes]

of electricity to be generated by RES in the Sierra Gorda mine from 2023

Implementation of the „Development of Energy generation, incl. RES” Program alongside changes in the national energy system structure will enable the avoidance of approx. 900 kt of CO2 annually

KGHM awarded

For effective advancement of its strategy, management and excellent financial results.

Grantem during the Economic Forum in Karpacz for excellent financial and operating results and for building a global brand.


The President of KGHM Polska Miedź S.A. was recognised as the most valuable president amongst listed companies in the ranking „TOP30. Assessment of Polish managers 2021” with a value of PLN 1.8 billion.


KGHM Polska Miedź S.A. received the Economic Award of the President of Poland in the category „International Success”.

Good Company, Good Employer and Eco-Firm – KGHM won awards in all three categories in the Polish Program Leaders of Social Responsibility (CSR). The competition identifies companies which pursue activities to support society, beyond the business sphere.

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