KGHM Polska Miedź
||The lead section of this article may need to be rewritten. (July 2010)|
|Traded as||WSE: KGH
|Key people||Herbert Wirth, (President)|
|Products||gold, silver, copper|
|Operating income||€0.6 billion|
|Net income||€0.6 billion|
|Total assets||€497.4 million|
KGHM Polska Miedź (KGHM Kombinat Górniczo-Hutniczy Miedzi Polish Copper) (WSE: KGH) is one of the largest producers of copper and silver in the world. The mining & metallurgy company is based in Poland in Lubin. KGHM Polska Miedź S.A. owns shares in 33 entities, operating in various production and service-related areas. Their vision is to become a major global copper producer by increasing copper production to approximately 700,000 tonnes, and to remain active in activities aimed at the local community by creating jobs and protecting the environment. KGHM plans to increase sources of revenue outside of its core business.
In 1991, the company was established as a state enterprise and since 1997, their shares have been traded on the Warsaw Stock Exchange.
KGHM is one of the largest Polish exporters, the largest employer in Lower Silesia, and a significant part of the WIG30 index.
The company is divided into 10 divisions:
- The mine in Lubin, Poland.
- The Polkowice-Sieroszowice mine in Polkowice County, Poland.
- The Rudna mine in Polkowice County, Poland.
- The ore enrichment plants located at each mine.
- The Tailings Management Division, which manages flows of tailings from the three ore enrichment facilities.
- JRG-H Emergency Rescue Division.
- The Smelter in Legnica, Poland.
- The Smelter in Glogow, Poland.
- The Copper Rolling mill in Cedynia, Poland.
- The data processing center.
The Company holds a strategic interest for the Polish economy. The year 2007 saw record results in the production of electrolytic copper – 532,974 t – and of metallic silver – 1,215 t, and above all a record profit – nearly PLN 3.8 billion and a future promising steady growth and an increase in the value of the Company.
The company is a sponsor of tennis player Łukasz Kubot.
On 6 December 2011, KGHM acquired Canadian Quadra FNX Mining, now KGHM International Ltd.
They have also won the Randstad Award, which is given to the company in Poland who is voted to be the "most attractive" employer. Criteria in assessing this award include financial stability and employment security.
Basic activities and operation of the company include: Mining of non-ferrous metals, the extraction of gravel and sand, the production of copper, precious, non-ferrous metals and salt. The casting of light and non-ferrous metals, forging, pressing, stamping and roll forming of metal and the management of waste, as well. General construction activities with respect to mining and production facilities, generation and distribution of electrical energy and of steam and hot water. This also includes professional rescue services, scheduled and non-scheduled air transport and telecommunications and IT services.
KGHM International is a subsidiary of KGHM Polska Miedź with operations in the USA, Canada, and Chile. Current projects include construction of the Sierra Gorda copper-molybdenum in Chile and progression of the Victoria Project, a polymetallic project, in Sudbury, Ontario, Canada. KGHM International, formerly Quadra FNX Mining Ltd., was acquired by KGHM Polska Miedź on March 5, 2012. KGHM International has approximately 2,500 employees in North and South America. The subsidiary operates six mines: Robinson, Carlota, Franke, Levack, Podolsky, and McCreedy West.
The Robinson Mine is located in Nevada. It is an open pit mine that produces copper with byproduct gold and molybdenum. It was KGHM International's most profitable mine, pulling in a net revenue of $532.9 million in 2012.
The Carlota Mine is located in Arizona. Like, Robinson mine, it is an open pit mine and produces copper. It is scheduled to close in 2013, despite operating through multiple court challenges. Its net revenue for 2012 was $84.1 million.
The Franke Mine is located in northern Chile. It is also an open pit mine and produces copper. Its net revenue for 2012 was $152.5 million. KGHM International is blending Franke pit with a partnered China mine, with less mining being focused on Franke.
Sierra Gorda project
Also in northern Chile is the Sierra Gorda - Ignacio Domeyko project, located in the Atacama desert. The area is considered to be one of the largest copper and molybdenum deposits in the world. While operations aren't expected to begin until 2014, already there have been reported cost overruns that have resulted in an investigation being launched by the Polish government. The Sierra Gorda project is a joint venture with two subsidiaries of the Sumitomo Group, Sumitomo Metal Mining Co. and the Sumitomo Corporation, although KGHM maintains a controlling stake of 55%. In March 2013, it was announced that the project would be delayed by an additional 2–3 months.
The Sudbury Operations includes the Levack mine and Morrison deposit, the Podolsky mine, and the McCreedy West mine, all located in Ontario, Canada. These mines are underground and produce copper with byproduct nickel. The combined net revenue for the Sudbury Operations for 2012 was $290 million with Levack/Morrison being the most profitable. The outlook for these mines are varied. Levack/Morrison expects higher production values in 2013 than 2012, Podolsky, which is almost mined completely, is expected to close at the end of the first financial quarter in 2013, and the McCreedy West mine is focusing on contact nickel.
Ajax Mine Proposal
The Ajax Mine is a proposal made by KGHM International for an open pit copper and gold mine near the city limits of Kamloops, British Columbia. The proposal has been met with much controversy among the citizens of Kamloops questioning the environmental impact of the mine. The Ajax Mine would bring 580 construction jobs and 380 full-time jobs during the life cycle of the mine. The mine has been expected in its 2011 Feasibility Study to produce 109 million pounds of copper and 99,000 ounces of gold annually. The mine is expected to run for 23 years.
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- Wednesday, May 2, 2012 3:31 pm (2012-05-02). "A Carlota Mine timeline - Green Valley News: State News". Gvnews.com. Retrieved 2014-02-25.
- nurun.com (2013-01-10). "Podolsky Mine closing". Sudbury Star. Retrieved 2014-02-25.
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- "UPDATE 2-KGHM shares drop after Chilean mine delay and cost overrun". Reuters. 2013-03-01. Retrieved 2014-02-25.
- "KGHM's Victoria Mine to begin production in 2019". Northern Life, May 12, 2014.
- July 28, 2011. "Talk of the Town: What people have to say about the Ajax project | Ajax Mine Proposal | Kamloops Daily News". Kamloopsnews.ca. Retrieved 2014-02-25.
- August 2, 2011 (2011-08-02). "Talk of the Town: What people have to say about the Ajax project | Ajax Mine Proposal | Kamloops Daily News". Kamloopsnews.ca. Retrieved 2014-02-25.
- "Ajax Project - KGHM International". Ajaxmine.ca. Retrieved 2014-02-25.
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- KGHM Polska Miedź
- Forbes Global 2000 (2007)
- KGHM International Ltd