GRI Indexes:

Level of copper and silver resources

Copper and silver are raw materials necessary for the development of the global economy. During more than fifty years in operation, KGHM has extracted over a billion tonnes of mining materials and produced 19.1M ton of copper. Current resources provide for further extraction over the next 40–50 years.

The deposit exploited by KGHM in the vicinity of the Sudety monocline is one of the largest copper ore deposits in the world.

Exploitation areas

Location of concession areas

Results of exploration projects

In respect of part of the exploration projects conducted, the quality of documented deposits was found to be so promising that we applied for concessions to prepare for excavation. In 2016 we also conducted preparatory works related to exploring new areas where promising ore deposits may be found.

2016 AREAS OF EXPLORATION

Radwanice-Gaworzyce

In 2016 in the area of the Radwanice-Gaworzyce deposit we conducted geological work under the concession for exploring the copper ore deposit using the underground method in the vicinity of Dankowice. In August 2016 an application was filed to obtain a concession for mining copper ore from the Radwanice-Gaworzyce deposit in the vicinity of Gaworzyce.

Synklina Grodziecka oraz Konrad

In 2016 we conducted drilling works aimed at a detailed examination of the hydro-geological conditions in the area, and we conducted surface seismic tests. We also prepared additional expert opinions and worked on geological documentation to assess the copper ore resources.

Retków-Ścinawa oraz Głogów

In 2016, under the Retków-Ścinawa concession we drilled further geological holes and began work on developing the concept for the development and utilization of the ore in this area. In July 2016 our application for an amendment to the concession for exploring and evaluating copper ore deposits in the vicinity of Retków-Ścinawa was filed with the Ministry of the Environment.In the area covered by the Głogów concession, we finished boring holes under Stage I of the exploration and evaluation work. In September 2016 we filed an application to amend the concession for exploration and evaluation of copper ore deposits In the application we presented, among other things, a modified scope of geological work for consecutive stages of the project.

The Bytom Odrzański and Kulów-Luboszyce projects are in the preparatory stages. In 2016 court and administrative proceedings were in progress in respect of concessions which would enable exploration in those areas. We also applied for a concession for exploration and evaluation of the oil and gas deposit in the vicinity of “Nowe Miasteczko”.

Under the concession for exploration and evaluation of deposits of potassium and magnesium salts with the accompanying minerals: copper and silver ores, and rock salt in the region of Puck, we analysed archival data and conducted surface geophysical tests, and in 2016 we started boring works. Based on the information collected, we reviewed the geological structure of the region and started to assess the possibilities of mining the examined deposits in consideration of the model for the mine and the processing technologies.

Exploration by KGHM INTERNATIONAL LTD.

The exploration work relating to the Victoria Project (Sudbury region, Canada) which confirmed the continuity and mineralization characteristics of the deposit, ended in 2016. We also engaged independent specialists who began verifying the technical and business assumptions of the Victoria Project.

The exploration goals of KGHM International Ltd. planned for 2017 provide for the continuation of works in the regions of Sudbury (Canada), Franke and Sierra Gorda (Chile) and Carlota (USA). We wish to evaluate the deposits in more detail, check for potential new deposits, and in effect, lead to extending the estimated time for conducting the mining works in these areas.