Polish copper company KGHM Polska Miedź S.A. has renewed a long-term agreement with Danish cable manufacturer NKT. The contract, estimated to be worth between 5.4 and 7 billion euros, secures raw material supplies until 2036. This cooperation strengthens the position of the Polish giant as a key supplier for the European energy sector during the ongoing green transition.

Billion-euro contract value

The agreement with the Danish company NKT is for a gigantic amount from 5.4 to 7 billion euros, making it one of the largest contracts in KGHM's history.

Time horizon until 2036

The cooperation has been extended by nine years, covering the period from 2028 to 2036, ensuring long-term sales stability.

Key energy partner

NKT is a leading manufacturer of power cables, for which KGHM is a strategic and reliable supplier of raw material in the heart of Europe.

The Polish copper giant KGHM Polska Miedź S.A. has announced the extension of its strategic cooperation with NKT, one of the most important European manufacturers of power cables. The new agreement, which continues the existing business relationship, will be in effect from 2028 to 2036. The estimated value of the contract is impressive, ranging from 5.4 billion to 7 billion euros, which at current exchange rates amounts to tens of billions of Polish zlotys. Securing such a significant sales market for nearly a decade ahead allows the company to plan stable extraction and production at its European plants. Copper has been a key raw material for the global economy since the Bronze Age, but its importance surged dramatically in the 19th century with the spread of electricity and the telegraph. Today, this metal is essential for building wind turbines, solar panels, and infrastructure for electric vehicles. The choice of a Polish supplier by the Danish company, which has been operating on the market since 1891, is not accidental. KGHM is the largest copper producer in Europe, giving it a logistical advantage over competitors from Africa or South America. Geographic proximity allows for a significant reduction in transport costs and minimizes the risk of supply chain disruption. As the company's management emphasizes, the extension of the partnership is proof of trust in the quality of Polish copper and the reliability of deliveries. This is particularly important in the context of the European Union's energy transition, which is generating record demand for transmission infrastructure. „"The extension of cooperation guarantees stable offtake of copper produced by KGHM in Europe and strengthens the Company's position as a strategic supplier of raw materials for the energy sector."” — KGHM Statement Despite the announcement of such optimistic news, KGHM share prices on the Warsaw Stock Exchange recorded declines, which analysts link to the broader situation on commodity markets and investor sentiment. Nevertheless, a long-term forward contract with a partner like NKT constitutes a solid financial foundation for the company for the coming years. The amount of copper covered by the agreement is illustratively compared to the amount of metal needed to make a wire that could circle the Earth 1,000 times. Minimum value: 5.4, Maximum value: 7 9 years — duration of the new copper supply agreement