By developing our resource base, our operations will be permanently diversified, both geographically and in terms of the mining and production of minerals other than copper and silver.
Access to geological resources is for KGHM a major driving force for developing a competitive edge.
It also determines the overall longevity of the Company. Following market standards, as part of its Strategy, KGHM plans to replace each tonne of mined copper with three tonnes of copper ore
resources. The above copper replacement rate will enable KGHM to have long-term operational prospects.
Production and newly-documented reserves of the top 22 copper mining companies
Our sustainable strategy for acquiring new resources foresees:
- acquiring new resources by taking over mining companies with economically attractive mineral resources, and
- exploration in areas in the immediate vicinity of existing operations in order to extend their operational life
KGHM’s exploratory activities are focused on the Company’s existing operations as well as on jurisdictions which are geopolitically stable and mining friendly. The Company tries to acquire mining projects that are situated in the lower half of the global cost curve, which will allow the Company to enhance its competitive edge, thanks to the declining average weighted cost of acquiring copper. The restrictive criteria used to evaluate potential resource projects remain unchanged. In addition to geopolitical security, other important factors include production costs and the operational life of a project. The Company wants to ensure that it will only be involved in projects of high economic value.
By developing our resource base, our operations will be permanently diversified, both geographically and in terms of the mining and production of minerals other than copper and silver.
