KGHM board approves '2055+' strategy with over 32 billion zł investment through 2030

Investment and financial targets

KGHM's supervisory board approved "Strategia Grupy Kapitałowej KGHM 2055+" on Friday, setting out the company's direction for decades. The plan commits over 32 billion złoty to investment between 2026 and 2030, with average annual capex of around 6.5 billion złoty. Nearly 80 percent of the total will go towards physical investments in Poland (the Main Technological Line and domestic subsidiaries), while the remaining 20 percent will flow to KGHM International and the Sierra Gorda mine.

About 40 percent of the annual spending will be directed at development projects, and roughly 2 percent of domestic tangible investment will fund R&D covering mining and metallurgy challenges, sustainability, and new business directions. The company expects to maintain an average annual adjusted EBITDA of 12 billion złoty and an EBITDA margin of 25.6 percent, based on assumed commodity prices of 11,454 USD per tonne for copper, 58.18 USD per ounce for silver, and a USD/PLN exchange rate of 3.56.

The decisions we make today will ensure economically optimal, long-term activity for KGHM over the next decades. Therefore we focus on developing the resource base and expanding infrastructure to enable mining in new concession areas.

Production and value chain goals

The strategy targets stable annual paid copper production of 730 thousand tonnes, with about 80 percent sourced from domestic assets (including 180 thousand tonnes from scrap) and 20 percent from foreign operations. Silver production is set at 1,290 tonnes per year, and molybdenum at 4.0 million pounds. By the end of 2035, KGHM aims to increase revenue from products more processed than copper cathodes to roughly 60 percent of total electrolytic copper sales.

The company plans to accelerate the energy transition through 2035, developing modern production technologies and consistently extending the value chain. Priorities include strengthening competencies and building the business potential of the entire capital group.

Strategy 2055+ envisages maintaining the leading position of the KGHM Capital Group among global copper and silver producers, not just in the coming years. Our ambition is to strengthen our global position over the long term.

The three pillars and future vision

The strategy rests on three pillars: strengthening business potential (financial stability, development of domestic and foreign assets, workforce retention); sustainable mining and metallurgical production (domestic resource base development, energy transformation, waste management, and cooperation with local communities); and innovation with new technologies, value chain extension, and a growing share of critical metals. The mission is defined as "Innovation in every gram of copper" and the vision as "Responsible mining for future generations."

After 2035, KGHM intends to become a modern, multi-commodity industrial group. The centrepiece is the construction of a new mine, tentatively called KGHM 2.0, which will operate as an independent, modern production line in new mining areas.

We plan to build a new mine: KGHM 2.0. It will be an independent, modern production line in new exploration areas. We will continue developing our strategic projects in Chile, the USA and Canada. We are also looking for new acquisition opportunities in other locations.

KGHM is Europe's largest copper producer, responsible for nearly 50 percent of EU mining copper output. Poland holds about 85 percent of European copper resources.