People and the environment

Our investments are a very important element of economic growth and their implementation contributes to the improvement of living and working conditions of local communities. We provide stable employment to more than 34 thousand people on four continents: in Europe, South America, North America and Asia. 

People and the environment

Investments and their impact on local

Our investments are a very important element of economic growth and their implementation contributes to the improvement of living and working conditions of local communities. We provide stable employment to more than 34 thousand people on four continents: in Europe, South America, North America and Asia. 

The Management Board of KGHM has been pursuing the sustainable development policy for years, among others by cooperating with municipalities in the Copper Basin in their development strategies, supporting their growth through payment of taxes or hiring residents of local communities. It has also entered into several social agreements whose purpose is to increase the living standards of residents. The Company’s representatives participate in meetings and sessions of City and Town Councils, and in events organized by local governments. Every year, mayors of municipalities, towns and cities participate in festivities organized to commemorate the Miner’s Day and the Metallurgy Worker’s Day. The Parent Entity sponsors events organized by municipalities; it provides support from the KGHM Polska Miedź Foundation’s budget to cover the costs of children’s summer and winter day camps, school field trips and outings to a swimming pool. Our investments are a very important element of economic growth and their implementation contributes to the improvement of living and working conditions of local communities. We provide stable employment to more than 34 thousand people on four continents: in Europe, South America, North America and Asia. 

In November 2019, KGHM and local officials talked about projects to support the Copper Basin. The meeting was attended by representatives of 21 local governments from the Copper Basin as well as KGHM representatives, Marcin Chludziński, President of the Management Board, and Adam Bugajczuk, Vice President (Development). They talked, among others, about the ramifications of the demographic crisis and its impact on specific programs to be implemented in the following year.

The social trends and their development are incorporated in the strategy pursued by the copper giant as one of the key aspects that has significant influence on the company’s surroundings.


" There is strong scientific evidence that a good family situation and positive family ties translate into harmonious development of all its members: children, youth, adults and seniors. This is why, feeling responsible for the Copper Basin, we are investing in pro-family programmes. They do not only benefit our company and employees, but also the entire community, which we are happy about"

- sad Marcin Chludziński,
President of the Management Board of KGHM Polska Miedź S.A.


"We believe it is very important, in the period of such dynamic changes in the society, to adjust the activities targeting beneficiaries of social programs. We support hundreds of projects, both financially and through volunteerism. We do not want to be seen solely as a financial partner, but as a good neighbour for our local governments, we want to be able to affect the form of our aid "

– sad Lidia Marcinkowska-Bartkowiak,
Executive Director for Communication at KGHM.


"Local governments are important partners in social dialogue. During the meetings, we are able to work on solutions together and plan social actions that will suit the needs of the residents of our region"

– sad Adam Bugajczuk,
Vice President (Development) of KGHM Polska Miedź S.A.

nly in October 2019, two municipalities, Legnica and Głogów, received donations from KGHM in the total amount of PLN 600 thousand. In both cities, the money was allocated to the support for health and social programmes.

KGHM also pursues the “Good neighbour” policy abroad, in the communities surrounding its facilities in Chile, the USA and Canada.

It has successfully conducted a dialogue with municipalities of the Sierra Gorda Copper Basin in Chile in connection with the extension of the company’s mining concessions and mitigation of the impact of the investments on life and health of the local community. 

KGHM has been consistently developing cooperation with local business. We are a stable partner caring for the highest standards in relations with business partners. We are fully aware of the significant influence of our activities on the local economy and community. This is why we conduct an ongoing analysis of the regional market, which produces regularly updated lists of eligible suppliers and manufacturers that meet our requirements. We also regularly monitor customer satisfaction levels. This allows us to improve the existing procedures and increase the transparency of our cooperation with businesses, also with respect to ethical values important for our company. The numerous measures we take to ensure safety and professional growth of our employees and collaborators go far beyond the existing legal requirements. Through transparency of all processes, we are not only a friendly neighbour to the community that gives us a “license to operate” but also a trustworthy partner for investors.

Business breakfasts of the KGHM Management Board with local government representatives from the Copper Basin.

KGHM Polska Miedź S.A. cooperated with the Association of Employers Polish Copper to organize two business breakfasts in 2019, attended by the Management Board of KGHM and representatives of local government authorities from the Copper Basin. The first breakfast was devoted to the “Social Strategy of Local Government” and was held on October 2nd and the other one, “Social Programs for the Copper Basin in 2020” on November 7th.

In a period of dynamic changes in society, businesses and local governments adjust their activities targeting beneficiaries of social programs. KGHM supports hundreds of projects, both financially and through volunteerism. As a financial partner and a good neighbour of local governments, KGHM wants to influence the form such assistance, so it initiates discussion on the joint actions.

During both meetings, the parties developed the solutions and social activities planned for 2020, which will match the needs of the residents of the Copper Basin region.

People and the environment

Cooperating with local communities in the KGHM Polska Miedź S.A. Group

In terms of cooperation in the expansion of the Żelazny Most Tailings Storage Facility to include the Southern Quarter, KGHM continued cooperation under the Agreements with the Rudna and Grębocice Municipalities - calling for the transfer of funds in 2019 to perform co-funding tasks in the following areas: recreation for children, healthcare, spa treatment for adults, revitalization of parks and recreational areas, cleaning ditches, securing rivers, protecting soil and crops against the harmful impact exerted by industry and protecting cultural heritage. 

The agreement with the Polkowice Municipality was continued calling for cooperation in the following areas: organizing and co-funding summer and winter recreation for children and youth, healthcare, protecting soil and crops, identifying alternative heating solutions, wider Internet access and improving mobile telephone coverage, supporting the preparation of recruitment processes conducted by KGHM and safeguarding the community directly adjacent to the Żelazny Most Tailings Storage Facility. 

The agreement with the Żukowice Municipality on the construction of the GG-2 shaft was also continued. In October 2018, a Memorandum of Agreement was signed in which, in addition to financial resources for the development of the municipality, KGHM provides health care and recreational cards to residents. 

In 2019, numerous meetings with Mayors of cities, towns and municipalities and councillors from the Copper Basin were held, also in the form of business breakfasts between the KGHM Management Board and local government authorities, where the role of cooperation between KGHM and local governments for building a strong brand of the region, the Company’s actions on behalf of environmental protection, electromobility, power engineering, and sponsorship initiatives were presented. In May 2019, KGHM organized a conference with local governments with the aim to explain the budget creation mechanisms and the budgeting rules at the local government level. The issue of electromobility was taken up at the conference for local governments held in November. 

The Electromobility Development Program is one of the key areas defined in the Responsible Development Strategy. 

From the viewpoint of local government units, the effect is improved quality of residents’ life as a result of, among others, air pollution and noise reduction as well as better availability and comfort of transport. A Letter of Intent, where KGHM and local government units expressed their wish to commence cooperation for the development of electromobility in the Copper Basin region, was signed at the conference.

Bearing in mind the successful cooperation between KGHM Polska Miedź S.A. and the local governments of the Copper Basin to date, actions for health, ecology and healthy lifestyle promotion for residents of the region were continued.  

In 2019, funds were provided to the towns of Głogów and Legnica for health and social programs serving the local communities. 

The Głogów Urban Municipality was provided with funding for the following actions: outpatient clinics, including the opening of a nephrology outpatient clinic, sessions in a salt grotto for primary school pupils, promotion of a healthy diet, sporting activities for children and youth with the use of the “Fit resident of Głogów” municipal sports facilities, planting of trees and shrubs.

The Legnica Urban Municipality received a donation for the following actions: the “Healthy Legnica” program aimed at propagating a healthy lifestyle and education as well as to increase the availability of medical care to residents of Legnica.

In the Głogów county, KGHM supported the following actions in the form of cash donations: preventive examinations for lung, thyroid diseases, diagnostics of prostate cancer, USG breast exams, promotion of a healthy diet, sporting and cultural activities for children, youth, adults, and the elderly, provision of additional equipment for the hospital, schools, and volunteer fire units.

KGHM also sponsored swimming lessons for over 700 children from the Copper Basin region.

Conferences and meetings as part of the Copper Basin social strategy, co-funded by KGHM and local governments, focused on the family foster care and initiation of the social campaign “The Family is Mine” and on building effective ways of assisting youth with problems in the Copper Basin. A research, prevention and training project in this area covered 17 schools and 10 local governments, and the findings were summarized at the conference: “Integrated prevention as a response to the developmental needs and problems of teenagers in the Copper Basin”. The conference was preceded by a series of 12 workshops for local governments.         

In 2019, work continued on securing existing infrastructure and terrain of the Victoria project, as well as preparatory work aimed at conducting additional exploratory work and work related to an application to obtain the required environmental permits. On 27 June 2019, the Canadian Environmental Assessment Agency decided that it was unnecessary to conduct an environmental assessment at the federal level, which means a positive conclusion of the process of obtaining an environmental permit. The Agency stated that the project’s environmental impact was properly described in the project description, and that the methods applied in the project for restricting its impact are in compliance with law in force. The Agency’s decision is a milestone in the development of the Victoria project.

In December 2017, the Ministers of Environment and of Energy, Mines and Petroleum Resources of British Columbia (provincial authorities) decided against the granting of an Environmental Assessment Certificate for the Ajax project.            In June 2018, the Government of Canada, through the Governor-in-Council (Cabinet) issued a negative decision regarding the Ajax project as the project is likely to cause significant adverse environmental effects. The decisions were made through the environmental impact assessment process, and reflect the substantial engagement of provincial and federal governmental agencies, First Nations and a broad spectrum of stakeholders, including thousands of local citizens. In 2019 only necessary work related to securing the existing infrastructure and the required monitoring of the terrain was carried out. A strategy for further action in respect of the Ajax project was also defined, which concluded with a mutual decision by the project’s partners to commence the process of re-engaging with its stakeholders, aimed at improving relations with First Nations and the local community. Under this strategy, talks were held with First Nations representatives.

People and the environment

Environmental actions

KGHM Polska Miedź S.A., as one of the largest socially responsible companies, acts to reduce its impact on the environment as far as possible.

We care for the natural environment minimizing our adverse impact.

The sustainable development concept, including in particular conservation of the natural environment is one of the most significant values driving the Company’s activities

In pursuing the slogans and values presented above, we are also guided also by an awareness of our responsibility not only at present but also in the future. Therefore, as regards sustainable development actions, KGHM Polska Miedź SA endeavours to find the best solutions serving the purpose of satisfying the demand for copper and other metals in connection with the growing human population. 

The demand for resources exceeds the Earth’s regeneration capacity by 75% for 2019.

The above indications make us look for solutions serving the purpose of providing products but also protecting the environment for both the present and future generations.

It is estimated that the global population will exceed 9 billion in 2040 with the simultaneous awareness of the Earth Overshoot Day indicator increasing year by year.

The KGHM Group joins in actions within the European Green Deal concept announced on 13 December 2019 and Implementing the Recommendations of the Task Force on the Climate-related Financial Disclosures (TCFD) of June 2017 as well as the Communication from the European Commission 2019/C 209/01 of 19 June 2019 Guidelines on non-financial reporting: Supplement on reporting climate-related information. KGHM Polska Miedź SA states that it has been implementing many of the recommendations indicated in the abovementioned documents for a much longer time, following the path of sustainable, environmentally responsible development.

Natural capital

The identification, planning, and performance of actions would not be possible without the awareness and identification of natural capital by the KGHM Group. Using the definition and methodology of the Natural Capital Coalition, it was determined that the natural capital of the KGHM Group included those natural resources serving as the source of economic and social benefits: mineral resources (ferrous and non-ferrous metal ores, sodium and potassium-magnesium salts, organic or mineral aggregates, and petroleum products), trees (wood), water and air.

Building on the idea of sustainable development as regards using the natural capital, the actions taken in the KGHM Group were arranged into three thematic areas:

  • tailings management and implementation of the circular economy idea 
  • protection of climate and air.

Protection of Climate and Air

The KGHM Group notices the occurrence of significant changes in Earth’s climate as a result of the increase in the average temperature on our planet, which has been observable since the beginning of the industrial era. It is also aware of the fact that the main cause of this process is the growing emission and excessive accumulation of greenhouse gases (GHG) in Earth’s atmosphere (as was ascertained based on the CarbonBrief analysis). This disturbed the natural circulation of these gases, consisting in their emission being balanced by the level of assimilation, which was observed earlier in the human era and analysed for the preceding periods. This has resulted, in particular in recent years, in increased dynamics of the so-called greenhouse effect generated by the gases. It is illustrated, for instance, by the considerable increase in temperatures over a year and the resulting occurrence of dynamic weather events (thunderstorms, rainstorms, hurricanes, droughts) and climate changes (increase in the average annual temperature, decrease in the average precipitation, and further lowering of water tables as well as the progressing steppe formation) at the latitudes where KGHM pursues its business activities.

The KGHM Group is commencing work on slowing down the pace of the negative climate changes. Thus, it has joined the global actions of countries (decisions of successive World Climate Summits), the European Union (European Green Deal, one of the assumptions of which is to be the world leader in reducing GHG emissions until full climate neutrality is achieved), Poland  (change of the energy mix of the country, creating a low-carbon economy), and individual enterprises pursuing the UN’s sustainable development goals provided for in the 2030 Agenda for Sustainable Development arising from its sense of responsibility and the sustainable manner of performing its business activities. 

These actions will ultimately be performed by the KGHM Group in a fully systematic manner, as recommended in the Communication of the European Commission being Guidelines on non-financial reporting: Supplement on reporting climate-related information (2019/C 209/01), including an Annex being Task Force on Climate-related Financial Disclosures (TCFD) (in the section concerning Metals and Mining). Despite the current non-compulsory nature of the documents listed above, the Group commenced work for the introduction of the resulting systematic actions and reporting method.

Their starting point was to determine the significance of the information related to climate for the KGHM Group. Based on the guidelines set by the experts from the AGH University of Science and Technology, using a reporting factor significance examination tool, the level of significance of the information related to climate for the KGHM Group was determined to be high in the short, medium, and long term as well as in the entire value chain of the KGHM Group.

  • The short term would be understood as the timeframe of the current business strategy of the KGHM Group,
  • the medium term would be understood as the timeframe until 2030, i.e. the year of meeting the emission targets set by the European Union (-30% compared to 2005 according to etCO2 from the non-ETS sectors) and Poland (-7% compared to 2005 according to etCO2 from the non-ETS sectors), which arise from the Paris Agreement (COP21)
  • długi okres czasu uznano perspektywę roku 2050 – roku realizacji przez Unię Europejską (z wyjątkiem Polski (vide postanowienia Szczytów UE z 20.06.2019 i z 13.12.2019)) zamierzenia pozostania neutralną klimatycznie.

It was established that the KGHM Group does not and will not have a very high direct impact on climate in the reported and future periods. In spite of the above, the indirect impact might be adverse and noticeable. It was determined in terms of social and environmental significance. The main products of the Group, as raw materials, go to the sectors exerting a major impact on the climate (construction, automotive output, power engineering). Thus, amendments, if any, to the regulations and additional burdens imposed on these sectors in connection with greenhouse gas emissions might have an adverse effect on the Group’s expenses.

Looking at climate changes from a broader perspective, the KGHM Group also recognises the financial significance and the related physical risks both in terms of acuteness and duration. This is because the observed intensification of weather anomalies might influence the Group’s production process. In terms of a long-term physical risk, this aspect is associated primarily with the lowering water tables in rivers (mainly the Oder). The lowering of the water level in rivers will affect the discharge of excess salinated over-sediment water from the Żelazny Most Tailings Storage Facility, as the discharge volume is strictly linked to the flow of water in the Oder river. 

These statements are made by the KGHM Group based on the following facts:

  1. The Company’s participation in the European emissions trading system (ETS), through the obligation to monitor and report carbon emissions and the purchase of emission allowances, builds the awareness of the system’s influence on the Company’s financial standing and predisposes it to seeking and implementing low-emission solutions. Therefore, as regards metallurgical processes, KGHM has reduced CO2 emissions by changing the shaft furnace technology into the flash furnace one and, as regards energy-releasing fuel combustion, it utilizes low-emission natural gas-fired CCGT units, thus partly replacing the fine coal-fired units.
  2. In accordance with the best available techniques “BAT” conclusions for the non-ferrous metals industries published in the EC Implementing Decision 2016/1032, KGHM initiated investment processes in order to adapt the installations to the requirements of the conclusions and thus a further reduction of emissions and the adverse environmental impact.
  3. The KGHM Group is preparing a climate policy which will be a systemic solution for implementing the Communication of the European Commission being Guidelines on non-financial reporting: Supplement on reporting climate-related information (2019/C 209/01), including an Annex on the Task Force on Climate-related Financial Disclosures (TCFD) (in the section concerning Metals and Mining). It covers also medium-term (2030) and long-term (2050) quantitative goals regarding:
    • reduction of direct GHG emissions (scope 1), but also indirect emissions (scope 2 and 3),
    • energy efficiency improvement,
    • increase in the use of energy from renewable sources,
    • minimization of actions in regions exposed to a long-term or acute physical risk,
    • increase in the percentage of products related to activities satisfying the criteria of a significant contribution to mitigating the effects of climate changes or adjustment to mitigating the effects of such changes,
    • engagement in the green finance system resulting from the new Green Bonds taxonomy announced on 19 June 2019.
  4. The KGHM Group has taken and will continue to take its own actions for climate and ambient air protection without any regulatory enforcement.

Water and sewage management

The KGHM Group considers water one of the most important components of its natural capital. It also assures that it strives to consume water and close its circulation in a manner as efficiently as possible in technical, economic and environmental terms. For that purpose:

  1. The conditions set forth in any water-law permits obtained for the purposes of operations permitting the use of the environment with regard to water and sewage management are complied with. The conditions set forth in the permits are consistent with the EU and domestic law. 
  2. The equipment is operated in accordance with the requirements and ensures that the adverse impact on the environment is minimized. 
  3. In addition to the above, the KGHM Group has for many years conducted and will conduct a series of its own activities, non-forced by legal regulations, aimed at the optimization of water and sewage management. This serves mainly to limit water consumption in the production process, especially in the Concentrators (i.e. Ore Enrichment Plants). In view of this KGHM Polska Miedź S.A. has introduced the circular economy at the Concentrators. Surplus water is discharged to the Oder, constituting an important element of regulation of the level of this river, so vital for Poland’s inland sailing.
  4. A detailed picture of the above activities conducted by the KGHM Group in 2019 is presented below in this section.

Water management and pursuit of the circular economy idea

Aiming at a circular economy is one of the priorities of the KGHM Polska Miedź Group. This indication is related to the Earth Overshoot Day indicator presented above. The Group welcomed the roadmap published on 24 September 2019 for the development of a circular economy in Poland, as well as the publication on 13 December 2019 of the European Green Deal, including the sustainable industry package.

KGHM has for many years been pursuing the approach resulting from the circular economy (CE) and wants to join its development. The Group bases this assertion on the following facts:

  1. The extraction of copper ore, followed by its processing at all stages of production, is inextricably linked to its impact on various aspects of the natural environment. The minimization of this impact is possible due to the implementation of circular economy, which contributes to environmental protection, improvement and development of KGHM’s industrial installations. In order to quantify the above, the KGHM Group constantly monitors data related to the environmental impact of its operations. The Group complies with all requirements resulting from regulations and best practice standards with regard to environment protection, and to a large extent takes proactive steps in this respect. In order to quantify the above, the KGHM Group constantly monitors data related to the environmental impact of its operations. The Group complies with all requirements resulting from regulations and best practice standards with regard to environment protection, and to a large extent takes proactive steps in this respect.
  2. KGHM Polska Miedź S.A. fully understands and implements the definition of circular economy, understanding it as the value of products, materials and resources in economy sustained as long as possible and waste production reduced to a minimum, aiming at the development of sustainable, low-emission, resource-saving and competitive economy. It also accepts and wants to pursue the European Union goals thanks to circular economy: savings in the amount of EUR 600 billion for firms from the EU, which accounts for 8% of their annual turnover, creation of 580,000 jobs, reduction of CO2 emissions by 450 million tons by 2030.
  3. KGHM Polska Miedź S.A. wants to participate in the implementation of the Polish roadmap to achieve a circular economy. Therefore, it wants to identify all possible activities in the Company aimed at increasing the efficiency of resource utilization and reducing waste production. Key elements of building a circular economy in KGHM Polska Miedź S.A. include:
  • innovation, strengthening of cooperation between the Company and science sector, and consequently implementation of innovative solutions related to a circular economy,
  • participating in the growth of the market for secondary metallic raw materials and increasing the share of such materials in production,
  • minimizing the volume of post-production waste to residual waste levels,
  • seeking and implementing solutions that allow utilization of waste storage sites as secondary deposits.
  1. The idea of creating a circular economy is put into practice in the KGHM Group in the following groups of actions:
  • economic utilization of rock forming minerals, as sealing material for the Żelazny Most Tailings Storage Facility, as filling in post-mining goafs, and material for applications in construction, road building and agriculture,
  • rfull reclamation of post-production areas,
  • development and implementation of environmentally-friendly flotation reagents and improvement of metal recovery from fine-grained feed,
  • utilisation of heat energy contained in the mined deposit,
  • development of the Company’s own research and development activity towards a circular economy,
  • development of the CuBR Joint Venture towards a circular economy,
  • research and development within the Horizon Europe program towards a circular economy,
  • development of the Company’s own investments towards a circular economy.
  • realizacja badań badawczo-rozwojowych w programie Horyzont Europa w kierunku GOZ,
  1. KGHM Polska Miedź S.A. implements the requirements introduced by the amended waste act, which include: launching a National Waste Database (BDO), surveillance system for waste storage and disposal sites and measures to secure claims to cover costs of removing negative environmental effects. 
  2. KGHM Polska Miedź S.A. has for many years conducted and will conduct a series of its own activities, non-forced by legal regulations, aimed at the implementation of circular economy. An overview of these activities for 2019 is presented below in this section.

The aforementioned activities in three thematic groups related to natural environment protection and minimization of inconvenience related to operations are implemented in KGHM Polska Miedź S.A. thanks to the KGHM environmental policy and KGHM energy policy, which set the highest ecological and environmental standards for the Company.

Environmental policy at KGHM Polska Miedź S.A.

Care for the natural environment is combined with the business model, in which throughout all its constitutive segments – from exploration to restoration – standards are applied to ensure safe and environmentally friendly business operations.

KGHM Polska Miedź S.A.’s Environmental Policy includes:

As a socially responsible company KGHM Polska Miedź S.A. cannot and does not want to avoid its responsibility for the environment. The extraction of copper and its subsequent processing at all production levels is inextricably associated with affecting particular components of the natural environment. Compliance with stringent legal standards is possible due to the systematic modernization of existing installations and the construction of new ones which reduce and minimize the impact on the environment. 

GHM's production plants have implemented an environmental management system according to ISO 14001, which means that their operations are safe to the employees and the environment. In 2018 the system was recertified in connection with the coming into force of a new edition of the standard, therefore all Divisions of KGHM Polska Miedź S.A. are compliant with the standard of 2015.

Formal status and environmental fees

KGHM Polska Miedź S.A. operates ten installations whose functioning, in accordance with the Act on Environmental Protection, requires integrated permits.

In addition, the Tailings Division holds permits for the operation of the Żelazny Most Tailings Storage Facility, and sector permits required by law. The mines operate on the basis of current sector permits with respect to airborne emissions and waste management.

Metallurgical installations at the Głogów and Legnica Copper Smelters and Refineries as well as the gas-steam blocks in Polkowice and Głogów also hold permits to participate in the CO2 emissions trading system, as since 2013 KGHM Polska Miedź S.A. has been participating in the obligatory European Union Emissions Trading System (EU ETS).

CO2 emissions in KGHM Polska Miedź S.A.

In 2019, emissions in the previous year (2018) in the amount of 1,110 thousand tonnes of CO2 were settled by freely-acquired rights (around 930 thousand tonnes of CO2 for 2018 and from reserves) supplemented by purchases of rights (EUAs or European Emission Allowances and CERs - certified emission reduction).

It is expected that 2019 emissions at the level of around 1.3 million tonnes of CO2 will be settled thanks to freely-acquired rights for the Głogów and Legnica Copper Smelters and Refineries as well as rights for the Gas-Steam Blocks in Polkowice and Głogów (around 900 thousand tonnes of CO2) and reserves of rights from prior years and purchases of rights (EUA and CER) in the amount of around PLN 13 million. 

Environmental fees paid by the Divisions of KGHM Polska Miedź S.A. in 2019 amounted to PLN 18 million. In 2019, in the structure of fees, the highest amount incurred was the waste storage fee: PLN 7 million. Another item of costs, over PLN 5 million, is the fee for emissions of gases and dusts to the atmosphere.

Amongst the Polish companies of the Group, the largest environmental impact comes from the activities of “Energetyka” Sp. z o.o. In 2019, this company incurred the highest environmental fees. They amounted to PLN 3.3 million and mainly comprised payments for water intake and waste discharge (PLN 2.3 million) and for emission of contaminants to the atmosphere (around PLN 1 million). In 2019, the company advanced investments aimed at limiting emissions of atmospheric pollutants, including expanding capacity based on gas-fired boilers and the construction of a fumes treatment installation meeting emissions standards compliant with the Directives of the European Parliament.  

Emissions from KGHM Polska Miedź S.A. plants.

Due to the specific nature of the products manufactured by the company NITROERG S.A. (explosives, initiation systems, fuel additives), it has an impact on the environment. The environmental fees incurred by this company in 2019 amounts to PLN 0.3 million. In 2019, the company advanced investments aimed at limiting its environmental impact, including modernisation of the sewage treatment plant, and continued construction of a new installation for the production of fuel additives, which will allow the re-use of concentrated acids in the production process. 

The company Cuprum Development Sp. z o.o., which owns land in the centre of Wrocław, in February 2019 received notification from the Voivode of Lower Silesia on the commenced enforcement proceedings to enforce the execution of non-financial obligations, i.e. remediation of owned land, to an extent pursuant to a decision of the Regional Director for Environmental Protection from 2015. Under this notification, execution will be conducted in accordance with the Act on administrative execution. The requested enforcement measure is a fine aimed at forcing execution of the obligation. Following dismissal by the Voivode of the complaints filed against the notification, the company filed complaints with the Minister of the Environment and is awaiting his decision.

Measures reducing environmental footprint of KGHM Polska Miedź S.A.

In addition to the fees described above related to its environmental impact, in 2019 the KGHM Group advanced numerous projects and activities aimed at reducing its environmental footprint. Their presentation is arranged by the areas presented above.

The most important undertakings related to environmental protection, both current and planned in the near term, are as follows:

  • the advancement of investments involving the need to adapt the metallurgical installations to BAT conclusions. Advancement of these investments is also related to further reductions in dust and gas emissions, including arsenic emissions,
  • updating the integrated permits for the operated installations,
  • overseeing the system for trading CO2 emissions, along  with obtaining rights for these emissions,
  • continuation of a program to promote health and prevent environmental threats, aimed at the people living in the nearest proximity to our metallurgical facilities, and construction of the southern quarter of the Żelazny Most 

In 2019, the Company spent more than PLN 229 million on investments to protect the natural environment, of which the largest expenditure, in the amount of over PLN 44 million, was incurred on replacing the absorption and drying towers of the sulphuric acid plant at the Legnica Copper Smelter and Refinery. 

Apart from the adjustment and fulfilment of the BAT conclusions, as well as a further reduction of greenhouse gas emissions and striving to achieve emissions neutrality, KGHM Polska Miedź S.A. conducted in 2019 activities to improve energy efficiency by increasing the share of energy obtained from renewable sources and, what is more, ones owned by the Company. To that end, the Lubin Mine (the mine that consumes the greatest amount of heat in the entire heat stream consumed by KGHM Polska Miedź S.A.) began in 2019 a program of heat recovery from mining waters by using heat pumps. Other energy-related climate and air protection activities, namely energy savings and reduction of energy consumption, were incorporated in the Energy Management System of KGHM Polska Miedź S.A. and are linked to the energy policy.

Emissions from KGHM Polska Miedź S.A. plants

Projects and activities conducted in the KGHM Group in 2019 with respect to water and waste management activities included mainly water rights permits. They were obtained by all domestic companies of the Group, except for one. The company Uzdrowiska Kłodzkie S.A. – Grupa PGU does not hold a water rights permit for the discharge of post-bathing water for Zakład Przyrodoleczniczy in Polanica-Zdrój. Because of this the fee paid by the company for the discharge of such waste water is 500% higher. There is also no water rights permit for the discharge of excess mineral water from the “Pieniawa Józefa I” and “Pieniawa Józefa II” inlets. The discharge of this water to the river is not subject to fees. In order to resolve the formal and legal aspects of this situation, in terms of obtaining legal water rights for the discharge of the aforementioned water to the river, the company is engaged in discussions with Town Hall, as the owner of the sewage system. The company is also awaiting the issuance of a water rights permit for the discharge of water following bathing for the unit Zakład Przyrodoleczniczy and the discharge of excess mineral water from the “Górne” inlet in Kudowa-Zdrój. In October 2019, the company appealed the decision received, due to the classification of unutilised mineral water from the “Górne” inlet as industrial waste.

The discharge of industrial waste from Mineral Water Bottling Plant no. II in Polanica-Zdrój to the municipal sewage system has not been regulated by law. The Miejski Zakład Komunalny (municipal services office) in Polanica-Zdrój did not respond to the company’s request for the clarification of conditions for the discharge of industrial waste to the municipal sewage system due to the lack of a signed agreement. The company is considering building a waste treatment plant on the grounds of the bottling plant.

Apart from the fact that the vast majority of companies in the Group hold water-law permits and besides the closing of water circulation in the Ore Enrichment Plant and discharging of surplus water to the Oder, in 2019 the KGHM Group conducted in the CuBR Joint Venture the project called “Innovative technologies of limiting the migration of salt-containing underground waters to surface waters in the vicinity of the Żelazny Most Tailings Storage Facility.”

The largest investment project of KGHM Polska Miedź S.A. completed in 2019 and aimed at implementing the idea of circular economy was putting into operation in Legnica Copper Smelter and Refinery of the RCR (Revolving Casting-Refining) furnace, for recycling smelting of copper. The furnace meets the highest environmental protection standards and is equipped with the latest process gas treatment installation. The investment optimizes utilization of the existing infrastructure; it will reduce per-unit cost of production and at the same time will considerable increase the use of recycled copper in KGHM Polska Miedź S.A. The operation of the furnace was officially opened on 28 June 2019 by the Polish prime minister, Mateusz Morawiecki.

Waste management and the implementation of the idea of circular economy constituted in 2019 one of the major directions of pro-environment activities for the KGHM Group. They can be divided into implementation/investment works and research and development works.

The Polish companies of the Group operate in compliance with environmental laws. Companies which are required to do so hold valid environmental permits, with a single exception related to the water and waste management area, which is presented in the relevant section. 

An important investment project conducted as a pro-environmental initiative and an element in the development of a circular economy is the manner of conducting the extension of the Żelazny Most Tailings Storage Facility. This model facility was extended in 2019 (the investment continues in 2020) to increase dam height without acquiring additional land. It will serve as a tailings storage facility as well as a future circular economy reservoir. In 2019, the Tailings Segregation and Thickening Station became an investment supporting environmental efficiency of the flotation waste storage process. The investment assumes implementation of the compaction technology for the tailings remaining after the completed ore enrichment process. This solution will result in a reduction of the water circulating between the Ore Enrichment Plants and the smelting plants, and consequently will lead to increased safety at the Żelazny Most facility. Direct benefits from the completion of this task will also include the possibility to deposit the entire stream of waste within a smaller area, improved stability of the Żelazny Most facility due to the smaller quantity of water, and the possibility to eliminate a considerable part of the water circulatng between the divisions of KGHM Polska Miedź S.A.

With respect to metal recovery, partial sampling was conducted on the “Wartowice” and “Gilów” storage sites in 2019.

With respect to the economic use of rock-forming minerals, flotation tailings were broadly utilized in 2019 at the Żelazny Most Tailings Storage Facility: coarse-grained processing tailings were and are used to build the dams of the facility, and fine-grained waste is used as sealing material for the water tank in the facility. About 18 million tonnes of processing tailings were used in this way in 2019.

In 2019, implementation research was also conducted on using thermally-processed flotation tailings as:

  • a component of hydraulic ash and lime binder – waste from the 750°C to 850°C roasting process shows it has properties comparable to those of hydraulic lime,
  • aggregate and binder for road construction – it has been demonstrated that aggregate may be produced from waste using the agglomeration method after silica and clay sludge are added, 
  • some concrete and mortar – sandstone waste can be used to produce cellular concrete and carbonate waste to produce foam concrete; the resulting products met the required standards,
  • a binder to solidify filling mixes for mining purposes; flotation tailings mixed with furnace ashes can be used for this purpose; strength parameters similar to those of natural materials have been obtained,
  • for production of mining concrete – tests were conducted using waste as a mineral powder for bituminous mass, to increase the granulation of cement-stabilized soil layer, as an additive to frost-resistant layers, to construct embankments, to build into the road underlying base – research showed the potential for this waste to be used as an asphalt filler as well as the possibility of using relatively small additions of waste in other applications.

Because of the available quantities, the potential use of flotation waste as goaf filling material and in road construction are considered to be the most interesting directions for the recycling of waste. For this reason, it was determined that approx. 0.5 million m3 of waste could be managed annually and ultimately approximately 15 million m3 of waste by 2055. 

With regard to scientific research activities, the KGHM Group conducted in 2019 research and development activities related to circular economy, pursued the CuBR Joint Venture, participated in research done by the KiC Raw Materials platform, and participated in European Research Programs Europe 2020 and Horizon Europe.

Own research and development projects included mainly actions focused on the preparation for and depositing of flotation tailings. Work was also carried out to develop technologies for the recovery of metals from copper ore smelting slag and to use them in the production of microelement-enriched fertilisers.

As part of the KiC Raw Materials studies, research work was conducted in 2019 on the Batterflai program in the KAVA6 project, in order to develop environmentally-friendly flotation reagents.

Within the CuBR Joint Venture, the following four themes were studied in 2019 in connection with the implementation of circular economy:

  • Comprehensive technology for using the carbonite part of flotation tailings from KGHM’s current production and production of innovative materials for the construction industry,
  • Innovative technologies of limiting the migration of salt-containing underground waters to surface waters in the vicinity of the Żelazny Most Tailings Storage Facility,
  • Design work on an installation to prepare and deposit mine tailings in KGHM’s underground mines,
  • Multi-technologies for recovery of useful components.

The Horizon 2020 Programme, which is the largest research programme carried out by the European Union, allowed KGHM Polska Miedź S.A. in 2019 to carry out a project entitled “Integrated innovative metallurgical system to benefit efficiently polymetallic, complex and low grade ores and concentrates (INTMET)". In turn, within the Horizon Europe program, which is a EU program for 2021-2027, KGHM Polska Miedź S.A participated in the Bohemian Study, one of whose pillars is the implementation of a circular economy.

Measures reducing the environmental impact of KGHM INTERNATIONAL LTD

In 2019, entities of the KGHM INTERNATIONAL LTD. Group also conducted activities related to protection of the environment.

 In the case of the Robinson mine (USA) these activities focused on monitoring air and water quality, waste management and reclamation of mining areas – approx. PLN 28 million was spent on these activities, including PLN 3 million under the permits to use the environment.

At the Carlota mine in the USA, activities were mainly related to mine decommissioning and environmental monitoring – total expenditures for this purpose amounted to around PLN 5 million.

In the Sudbury Basin mines (Canada) activities focused on environmental monitoring. PLN 1 million was incurred for this purpose. 

At the Franke mine (Chile) activities focused on acquiring required permits and environmental monitoring. Total expenditures for this purpose amounted to PLN 6 million.

Financial resources for mine decommissioning and restoration of mining areas

Pursuant to laws in force in the United States and Canada, the KGHM INTERNATIONAL LTD. Group is obligated to purchase government environmental bonds in the amount of the estimated provision for decommissioning of mines and technological facilities.

As at 31 December 2019, the value of assets for decommissioning the mines of KGHM INTERNATIONAL LTD. (cash) amounted to PLN 68 million (as at 31 December 2018: PLN 117 million).

Moreover, as on 31 December 2019 KGHM Polska Miedź S.A. issued letters of credit for the amount of PLN 397 million (as on 31 December 2018 – PLN 345 million) to secure liabilities under liquidation and reclamation of mining areas. The letters of credit issued by KGHM INTERNATIONAL LTD. as on 31 December 2019 amounted to PLN 202 million (as on 31 December 2018 – PLN 85.0 million).

Apart from operating activities, it should also be noted that KGHM Polska Miedź S.A. strives to seek new, future-oriented solutions regarding reclamation of post-industrial areas. For this reason, in 2019 it participated in the RevRis program executed as part of KiC Raw Materials KAVA 6.

Activities to meet REACH Regulation requirements

KGHM is a member of six international consortia created to meet the requirements of EC Regulation No. 1907/2006, the so-called REACH Regulation. In 2019, cooperation with the consortia involved adaptation to changes in REACH requirements as regards registration documentation, the classification of substances, assessment and authorisation. These changes are to be introduced smoothly, which is why the REACH consortia will continue to function.

Energy Policy of KGHM Polska Miedź S.A.

The primary objective of KGHM Polska Miedź S.A. as regards energy management and pro-climate activities is to implement a rational energy management programme while ensuring the security of energy supply to the facilities and installations of the Company's core production line. The process of implementing the international standard of energy utility management in accordance with the ISO 50001 standard began with the adoption of an Energy Policy by the President of the Management Board of KGHM Polska Miedź S.A. (28 November 2016). At present, the second edition of the policy approved on 28 February 2019 is in effect.

The Energy Policy contains the most important assumptions of KGHM Polska Miedź S.A.’s activity for the Energy Management System. In performance of its guidelines, the Company is committed to:

  • provide the resources necessary to achieve the planned energy objectives and outcomes, conduct activities in compliance with legal regulations as well as other requirements related to the consumption of energy,
  • create desirable attitudes, build awareness and constantly improve the skills of the Company’s employees and collaborators performing tasks for KGHM Polska Miedź S.A.,
  • prevent waste in the area of energy consumption, cooperate with partners and suppliers in procurement of material goods and services, including energy efficiency as an important selection criterion.

The assumptions adopted in the Energy Policy of KGHM Polska Miedź S.A. are implemented by all employees of the Company, as well as other persons and entities performing tasks for its needs.

The implementation of the ISO 50001-compliant Energy Management System in KGHM Polska Miedź S.A., including the application of the accepted Energy policy, has resulted in introducing a number of regulations and taking actions to ensure that energy management is rational, legal and includes, among others:

  • rules of conduct in the investment and procurement process,
  • energy overhauls in KGHM Divisions and the Head Office performed in accordance with the approved methodology,
  • approved objectives and tasks approved,
  • implementation of the regulations: Legal and other requirements in the field of power generation and evaluation of their conformity for purposes of the Energy Management System at KGHM Polska Miedź S.A.

Energy Management System (EMS) in KGHM Polska Miedź S.A.

In 2017 the Parent Entity and Energetyka Sp. z o.o. implemented an Energy Management System (SZE), in conformity with PN-EN ISO 50001:2012. As a result of the implementation of EMS and application of the Energy Policy, the costs of energy audits are avoided, which must be performed pursuant to the Energy Efficiency Act if no certified Energy Management System is in place as imposed by the Energy Efficiency Act and further improvement of the energy consumption optimization process.

The second supervision audit carried out in KGHM Polska Miedź S.A. in June 2019 by an external certifying entity, UDT Cert, confirmed that KGHM Polska Miedź S.A. had in place an ISO 50001-compliant EMS and upheld the Certificate granted in September 2017. At present, the work is under way in KGHM Polska Miedź S.A. in connection with the switch to the new edition of the PN-EN ISO 50001:2018 standard.

As a result of the conducted energy reviews, 46 energy efficiency improvement targets have been set. 61 energy tasks have been defined and the key energy performance measures have been specified. The implementation of the EMS also reduces the costs related to the purchase and consumption of power utilities. In 2018, related savings amounted to approx. 104 GWh of energy. The Company plans to achieve further savings by 2020. At the same time, the Company reduces greenhouse gas emissions, thereby reducing the cost of buying CO2 emissions rights. Most importantly, the implementation of standards and improvement of procedures improve occupational safety and increase employees’ skills.

KGHM Polska Miedź S.A. Health Promotion and Environmental Hazards Prevention Program

The purpose of the Program is to provide preventive care for the inhabitants of the Copper Basin with a special focus on children and young people through the implementation of tasks such as:

  • prevention and health trips to mountain or seaside spas as part of the “Green School” program,
  • year-long rehabilitation and sports activities at a swimming pool,
  • tests monitoring the presence of lead in blood,
  • tests monitoring the presence of arsenic in the bodies of the region’s inhabitants,
  • environmental education combined with promotion of health.

The “Health Promotion and Environmental Hazards Prevention Program” has been implemented for two years by the KGHM Polska Miedź Foundation in cooperation with an external enterprise.

People and the environment

Social engagement

The KGHM Polska Miedź S.A. Group is a global company open to new directions of development, which has a significant influence on the well-being of communities, regions and even countries – because of that, our activities related to social issues is particularly important. KGHM works continuously to improve its relations with the environment, striving towards harmonious cooperation. Cooperation with social partners is the key success factor in development projects undertaken by the company. It also contributes to reducing social risk in the activities of KGHM. Social dialogue mechanisms are a natural extension of the business activity which, due to its large scale and character, impacts the quality and standards of life of the residents. The pillars of the KGHM’s corporate social responsibility include CSR programs, activities of the KGHM Foundation and sponsorship. 

In its relations with clients, employees, external partners and local communities, the KGHM Polska Miedź S.A. Group complies with the laws which are in effect in the countries where it operates. The Group also complies with voluntary obligations resulting from ISO and ASTM standards as well as from membership in international organisations such as International Copper Association, European Precious Metals Federation, Eurometaux, Euromines, the London Bullion Market Association, the European Technology Platform on Sustainable Mineral Resources, the European Innovation Partnership, and domestic organisations, including: the Polish Association of Listed Companies, Stowarzyszenie Inżynierów i Techników Metali Nieżelaznych [Association of Non-Ferrous Metals Engineers and Technicians], the Economic Chamber of Non-Ferrous Metals and Recycling, the Polish Committee of the World Mining Congress, Polish-Canadian Chamber of Commerce, the Polish Chamber of Commerce for High Technology, and the Employers’ Organization of Polish Copper. 

The rules:

  • Compliance with the regulations of the commonly binding law as well as the internal regulations in effect in KGHM Polska Miedź S.A.
  • Compliance with both the obligations contemplated in the agreements, and verbal promises made to our clients, suppliers and social partners.
  • Reliable performance of assigned duties.
  • No offering or acceptance of bribes or other material or personal benefits; and no entering into cooperation with companies of doubtful reputation.

The KGHM Polska Miedź S.A. Group assumes responsibility for the quality of its products and services.

Pursuant to its Code of Ethics, KGHM complies with the principles of ethical conduct in the relationships with its partners. The KGHM Polska Miedź S.A. Group requires compliance with high ethical standards not only by its own employees, but also by its business partners who are provided with and obliged to abide by the Code of Ethics, the Anticorruption Policy and the principles of accepting/giving gifts, gratuities and business invitations. 

The KGHM Polska Miedź S.A. Group requires observance of the “zero tolerance for corruption” principles in mutual relationships. It puts special focus on transparency of transactions. It monitors the supply chain and product life. Business partners of the KGHM Polska Miedź S.A. Group are evaluated with regard to corruption risk. Business is conducted only with entities of proven reputation. Thanks to appropriate procedural arrangements, the KGHM Polska Miedź S.A. Group prevents money laundering and the financing of criminal activities, including terrorism. It specifically protects the personal data of partners as well as commercial, technical or organizational information entrusted to it. The KGHM Polska Miedź S.A. Group is guided by the principles of fair competition.

Competition Law Policy in the KGHM Polska Miedź S.A. Group

There is a Competition Law Policy in the KGHM Polska Miedź S.A. Group. Its purpose is to establish the operational framework for the system to ensure compliance with the competition laws prevailing in all the countries of its operations, including.

Responsible Supply Chain Policy in the KGHM Polska Miedź S.A. Group

The KGHM Polska Miedź S.A. Group complies with the highest standards of production and business ethics. We are guided by those principles across our value creation chain, which is reflected in the Code of Ethics of the KGHM Polska Miedź S.A. Group. The awareness that the selection of responsible suppliers, especially as regards the sourcing of conflict minerals (such as gold, tin, tungsten and tantalum) and silver, is of key importance for conducting activity oriented on sustainable development. The foregoing issues are regulated in the Responsible Supply Chain Policy. Its purpose is not only to guarantee the selection of only responsible suppliers, especially with respect to the conflict minerals listed above, but also to ensure that the goods and services procured do not contribute to financing terrorism and are manufactured or provided in compliance with basic human rights, labour standards, standards of environmental protection and preventing corruption.

he Parent Entity KGHM Polska Miedź S.A. has fully implemented an internal responsible gold and silver supply chain management system which is comprised of the Responsible Supply Chain Policy in the KGHM Polska Miedź S.A. Group and the Responsible Bullion Supply Chain Audit Procedure in KGHM Polska Miedź S.A. In 2019, the “Procedure for assessing the supply chain for gold and silver in KGHM Polska Miedź S.A.” was updated in the Company in order to assure its compliance with the current LBMA Responsible Gold Guidance V8 and LBMA Responsible Silver Guidance V1. The system is subject to independent external audit to ensure its compliance with LBMA Responsible Gold Guidance and the LBMA (The London Bullion Market Association) certification.

In order to ensure compliance with the due diligence principles, the KGHM Polska Miedź S.A. Group has implemented an internal system of responsible supply chain management which is comprised of the scope of the system’s application, the system’s organization, the participants of the process, the criteria for acknowledging a business relationship as being a high risk relationship, the supply chain audit process (taking into account the procedure of business partner reliability assessment), transaction monitoring, documentation storage and employee training. The management of the process has been entrusted to the Head of the Corporate Risk and Compliance Management Department, reporting directly to the Company’s Management Board. An e-mail address,was also set up to which any comments and observations related to the gold supply chain may be sent by employees, business partners and other stakeholders.

In 2019, all suppliers passed the Responsible Metals Supply Chain Audit Procedure with a positive result. 

The description of the policy for the KGHM Polska Miedź S.A. Group’s business partners may be found at

Foundations, sponsorship and CSR activities in the KGHM Polska Miedź S.A. Group

KGHM is a good neighbour and trustworthy investor. It supports local communities, social organizations and institutions related to science, culture and sports.  It promotes an active lifestyle and helps people in need. 

One of the pillars of our efforts in the area of corporate social responsibility is the KGHM Polska Miedź Foundation which is engaged in pro publico bono and charitable activities. It helps in performance of socially useful projects, and it supports the people who are experiencing hardships.

KGHM Polska Miedź S.A. Foundation

The KGHM Polska Miedź Foundation has continued the multi annual social activity of the Founder, KGHM Polska Miedź S.A., since 2003. A signpost for the Foundation's day-to-day activities are the values held by the Founder, which include zero harm, teamwork, results driven, accountability and courage. The Foundation engages in actions to increase the safety and health, intellectual, professional, and cultural development of residents and their activation to perform actions for the common good in the region.

The basis for the operation of the KGHM Polska Miedź Foundation are financial and material donations granted to:

  • individuals in the field of health protection and victims of natural catastrophes and disasters,
  • institutions for project execution.

In 2019, the Foundation supported many valuable activities, and yet it was not able to meet the growing needs of the environment and stakeholders. The level of aid granted to the institutions accounted for 17% of all applications registered, and in the case of support for individuals, it was 24%. 

The projects planned for 2020 are a natural continuation of the Foundation's activities to date. The assumptions are based on an analysis taking into account the needs of the inhabitants of the Copper Basin, Lower Silesia and all of Poland as regards health and safety, sports and recreation, culture and tradition as well as science and education. 

The activities of the KGHM Polska Miedź Foundation in 2020 will continue to focus on granting donations and controlling their spending as well as on running dedicated programs. The commitments undertaken by the Foundation will be carried out with the utmost care, thorough analysis of the needs described in the requests and their compliance with the Foundation Statutes and the Founder’s objectives, with a consideration of the capacity to help. As in previous years, applications for donations will be accepted and formally reviewed by the Foundation Office staff, and they will be examined and evaluated at meetings of the Foundation Management Board. 

In 2019, the KGHM Polska Miedź Foundation made every effort to identify various social needs, in line with the assumptions of its articles of association and within its capabilities. Support was granted in the form of cash donations in a total amount of PLN 20,243,989.96, including:

  • PLN 17,763,651.78 for the implementation of 313 projects;
  • PLN 1,194,825.18 for 169 individuals;
  • PLN 1,285,513.00 for the implementation of the “Health Promotion and Environmental Hazards Prevention Program”.




Amount awarded PLN

Number of projects/ number of individuals

Donations for institutions

17 763 651,78


  1. Health and safety

3 453 005,00


  1. Science and education 

2 422 608,56


  1. Sports and recreation 

3 266 227,33


  1. Culture and tradition 

8 621 810,89


Donations for individuals

1 194 825,18


  1. Health care 

1 187 691,18


  1. Social assistance

7 134,00


„Health Promotion and Environmental Hazards Prevention Program”

1 285 513,00

616 (dzieci)

Total Donation Amount

20 243 989,96 PLN

Health and safety

Health and safety are a strategic area of operation for the KGHM Polska Miedź Foundation. In 2019 alone, 45 projects were co-funded for a total of PLN 3,453,005 and 169 individuals received donations totalling PLN 1,194,825.18.

These funds were used for purchasing e.g.:

  • specialized medical apparatus and equipment for hospitals, rehabilitation centres, and other healthcare facilities,
  • modern rescue and fire-fighting equipment and special vehicles for local emergency rescue facilities, e.g. fire and police stations.

In 2019, in the “Health and safety” area, the Foundation also co-funded preventive examinations for residents as well as initiated and supported projects promoting blood donation and hemotherapy, and co-funded scientific conferences in the field of medicine. Moreover, the Foundation supported projects aimed to prevent exclusion of the disabled. Cash donations were made, among others, for projects related to organization of rehabilitation stays or Christmas actions for those in need, e.g. Christmas Eve for the homeless or gifts for children.

In 2019, individuals received financial aid from the KGHM Polska Miedź Foundation for health care, including in particular: rehabilitation stays, inpatient rehabilitation, purchase of hearing aids and wheelchairs, surgical treatment, including treatment abroad, and removal of architectural barriers.

Science and education

Science and education is the area of comprehensive actions of the KGHM Polska Miedź Foundation to support the development of education, science, and economy based on knowledge, innovation, social capital, and learning society. As part of a broad range of initiatives, the amount of PLN 2,422,608.56 was spent to run 56 projects in 2019. 

The scientific projects supported by the Foundation included publications, scientific conferences, competitions, education and integration activities for children and youth, academic scholarships and awards. Funds were also spent for teaching aids and classroom equipment in education establishments, which contributed to improved level of education. 

In 2019, the Foundation funded the National Science Centre Award in the amount of PLN 50,000.00 for the winner of the competition in humanities, social sciences and arts, which was a distinction for a young scholar for significant scientific accomplishments as part of fundamental research conducted in a Polish academic centre, evidenced by publications affiliated in a Polish academic centre.

In 2020, the Foundation intends to continue its comprehensive activities supporting the development of education, science and the industry and higher education. It will promote innovation in education and the need for education in line with trends observed in the labour market. In the “Science and Education” area, the KGHM Polska Miedź Foundation will focus on propagating science and education. 

Sports and recreation 

Sports and recreation is the area of operation for the KGHM Polska Miedź Foundation which supports all sports initiatives and popularizes social attitudes and behaviours based on values propagated by physical culture and sport. In 2019, this area was one of the most popular among the Foundation’s beneficiaries. The amount of PLN 3,266,227.33 was spent to implement 88 projects in this area.

The following were among the initiatives co-funded in the “Sports and recreation” area:

  • leisure for children and youth,
  • training activity of sports clubs,
  • organization of sports events.

The cash donations provided by the Foundation enabled the purchase of sports equipment and delivery of numerous sport training courses, various tournaments and competitions, and establishment of new recreational and sports facilities, such as playgrounds for children. Moreover, some of the funds were dedicated to co-funding the organization of summer holidays in the form of camps, day camps for children and youth by local divisions of the Society of the Friends of Children (TPD), the Polish Scouting and Guiding Association (ZHP), community day centres, associations, orphanages, and parishes. The participants were mainly children and youth from underprivileged, dysfunctional, and poor families, who, thanks to the Foundation’s support, had the opportunity to go to the seaside or the mountains for the first time in their lives and learn about another culture.

The Foundation considers popularization of physical culture and sport as well as education in preventive health care an important field of social life and therefore intends to continue activities promulgating an active and healthy lifestyle. In the area “Sports and Recreation”, the KGHM Polska Miedź Foundation will support all actions for the development of young people’s physical activity taken by local institutions, associations, and sports clubs in 2020.

Culture and tradition

The Foundation respects the cultural heritage of previous generations, which underlies identity building, and referring to community traditions and ones cultivated by various social and cultural groups becomes the most important value. In 2019 alone, 124 projects in the area of culture and tradition were supported with the total amount of PLN 8,621,810.89.

In 2020, the Foundation intends to continue its support for projects consisting of commemorating and promoting Polish cultural or historical heritage as well as strengthening local cultural identity and participation in culture at the local, regional, national and global level. The aided projects will be related to rescuing cultural heritage and tradition and will contribute to a considerable improvement of the condition of many heritage structures, and some will even save the heritage structures from a structural collapse. As regards supporting culture and art, the KGHM Polska Miedź Foundation will also provide financial aid to diverse artistic and cultural events organized by various associations, cultural societies, cultural centres, and museums.

Programs financed by the Foundation in 2019

The “Health Promotion and Environmental Hazards Prevention Program” has been implemented for three years in cooperation with an external enterprise.

In 2019 alone, the amount of PLN 1,285,513.00 was allocated for its implementation and 616 children from the municipalities of Jerzmanowa, Głogów (urban), Głogów (rural), Kotla, Pęcław, Polkowice, and Żukowice were covered by it.  It is intended to counteract the potential impact of industry on people, in particular children living in the counties of: Głogów, Legnica, Lubin and Polkowice. It provides financing for preventive and health trips for children and adolescents aged 6-16 to mountain or coastal health resorts. Given the great interest of both the participants and the local community, the Foundation intends to continue and increase the funds for the implementation of the “Health Promotion and Environmental Hazards Prevention Program” in 2020.

More information on the activity and projects of the KGHM Polska Miedź Foundation may be found at

REVIMINE Innovation and Cultural Heritage Foundation 

The Revimine Foundation was established in 2014 by KGHM Polska Miedź S.A. to engage in activities related to protection of cultural heritage as well as the mining and metallurgical traditions of the Copper Basin. The Foundation supports the undertakings and initiatives aimed at technological, environmental and social revitalization of post-industrial areas that are no longer used for industrial purposes, and other areas that are significant from that standpoint, and restoration of the environment.

See more information on the Revimine Foundation at


KGHM’s sponsorship strategy is closely associated with the activity pursued in the area of Corporate Social Responsibility (CSR) and assumes that most funds will be allocated to the performance of the planned actions for promoting the Company and the region on the one hand and for supporting valuable cultural, sports, scientific, and social initiatives and undertakings contributing to Lower Silesia marking its presence on the map of Poland and Europe on the other hand. 

The areas falling within the scope of the sponsorship activity are culture, science, and sport.


The Company considers sport an important area of social life and therefore it supports both top-class professional sport and amateur sport. As the largest employer in the region, it appreciates the significance of sport in forming the culture of leisure for adults and its educational role for youth. The Parent Entity is the major sponsor and at the same time the owner of Zagłębie Lubin S.A., a football team playing in the top Polish football league.

For years, KGHM Polska Miedź S.A. has been one of the sponsors of “Bieg Piastów”, a cross-country skiing marathon, in Jakuszyce. KGHM also supports other running events – “Cross Straceńców” (Cross-Country Race of Desperados), the New Year Running and Walking Event in Głogów, the Wolf’s Trail Run to commemorate Polish “Disowned Soldiers”, as well as local sports organizations whose members include Employees of the KGHM Group.


The Company is perceived as a patron of culture and art. KGHM participates in organizing and sponsoring significant projects addressed to the society in the region and the whole country. In 2019, KGHM took patronage over the Royal Castle in Warsaw, which was inaugurated by the exhibition “To rule and to dazzle. Jewels and jewellery in Poland in the 16th and 17th centuries”.


As regards science, KGHM supports higher education institutions and scientific institutes, thus tightening cooperation and building a bridge between the industry and the academia. The Company provides financial and subject-matter aid to projects thematically related to the problems solved to meet the needs of KGHM and the region.

To ensure transparent rules of taking decisions to support a given project, offers are analysed by the Sponsorship Committee. Decisions issued by the Committee are recorded in a report, which is approved each time by the President of the Management Board of KGHM Polska Miedź S.A. 

The sponsorship activity of the KGHM Group is subject to regulations given in the Sponsorship Policy of KGHM Polska Miedź S.A. and the procedure of obtaining an opinion from the Sponsorship Committee.

A list of amounts granted by KGHM Polska Miedź S.A. in 2019 within Sponsorship broken down by areas:

Area Amount awarded PLN
Sports 22 972 478
Culture 8 496 622
Science 1 805 725
Total 33 274 825

The amount spent by the KGHM Group companies (excluding the Parent Entity) as part of its Sponsorship activity in 2019 was: PLN 5 815 900.

CSR Programs performed by KGHM Polska Miedź S.A.

EKO Zdrowie [ECO Health]

Social responsibility and sustainable development are important elements of business operations today. A company that cares for the development of its own organization must take into account activities aimed at achieving a balance between its profitability and the broadly understood social interest.

CSR is particularly important in the mining industry. Due to the specificity of their operations, Companies like KGHM have a special responsibility for the implemented projects. 

By planning and pursuing CSR activities the addressees and direct recipients of which are social beneficiaries of its environment, the Company upholds the “license for operation”, which is important for the group and which is manifested in the social acceptance of KGHM’s business activity in the mining sector.

The ECO-Health program was launched in 2014 as part of corporate social responsibility. The priorities of the ECO-Health program are in particular promotion of preventive health care and active lifestyle among residents of the Copper Basin. The assumption of the program is to take up the projects and initiatives for the promotion of preventive health care, active lifestyle, physical activity, and recreation, thus taking care of children’s, adults’ and the elderly’s health, among residents of the region. 

The program’s efforts to advance include regular activities: Nordic Walking for adults, recreational gymnastics for elderly citizens, and swimming lessons for children.



The Nordic Walking project is addressed to people over 35 years of age. It assumes cyclic activities with the participation of qualified and experienced instructors in various cities and towns of the Copper Basin. The participants acquire or improve the basic skills of walking with the poles and take part in lectures on Nordic Walking techniques and principles of healthy nutrition.

Nordic walking is an activity for everyone, regardless of age or fitness. Its impact on the body is similar to that of jogging without putting excessive strain on joints and the spine. It relieves hip and knee joints, the lumbar spine, and releases shoulder, neck, and back muscle tension. Additionally, it does not require specialized equipment and engages up to 90 per cent of muscles safely (with a low risk of injury).

So far, 10 editions of the activities have been held in which more than 1,500 people participated. 

The swimming teaching program  assumes cyclic basic swimming classes for children aged 5–10. The classes are held in indoor swimming pools in several towns of the Copper Basin: Chojnów, Legnica, Lubin, Polkowice, Głogów, and Rudna, and children develop their basic swimming skills under the supervision of qualified instructors from swimming clubs in the region. Swimming is a sport strongly recommended to children. It helps ensure the cor ect posture and reverse scoliosis. This discipline makes a child develop healthily, be physically fit, have a good stamina and motor coordination. Water exercises have a highly positive influence on the respiratory and circulatory systems, too.

So far, 10 editions of the swimming learning activities have been held in which approx. 3,000 children participated.

Recreational gymnastics with specialized hammocks, a project dedicated to the elderly, is implemented in a few towns in the region: Lubin, Legnica, Polkowice, Głogów, Chojnów, Ścinawa, and Złotoryja. Fitness instructors and physiotherapists participate in the classes.

Over 250 people aged 55–80 have taken part in three editions of the project so far.

In 2019, a screening project was launched for KGHM employees: computed tomography for early detection of lung cancer, diagnosis of emphysema, and assessment of coronary artery calcification. There were more than 800 KGHM Polska Miedź S.A. employees participating in the first edition of the examinations.

“Copper Heart” Employee Volunteerism 

he “Copper Heart” employee volunteerism program has been operating in KGHM POLSKA MIEDŹ S.A. since 2014. It is a form of support provided by the employer to employees for their personal development and pursuit of their passions, and joint engagement in socially significant actions enhances integration and job satisfaction. The voluntary activities implement and reinforce the values guiding KGHM employees on an everyday basis: responsibility, safety, performance orientation, courage, and collaboration. Employees engaging in organizing and participating in charity actions become ambassadors of the KGHM Polska Miedź S.A. brand and they are the best evidence of the effectiveness and appropriate implementation of the corporate social responsibility policy.   

Volunteers, Company employees, with the support from KGHM Polska Miedź S.A., organized 20 charity actions in 2019 .

“Copper Competition”

On 27 March 2019, KGHM Polska Miedź S.A. inaugurated the “Copper Competition” scholarship program. The new program is addressed to talented Polish athletes. Each beneficiary receives individual financial aid. 

The aim of the program is to grant scholarships to the athletes selected in cooperation with the Ministry of Sports and Tourism. The scholarships allow them to focus on training and the best possible performance. 20 athletes from all over Poland benefited from the program in 2019. Every year, the President of the Management Board, in cooperation with the Ministry of Sports and Tourism, will allocate a certain amount to the development of Polish athletes. The basis for granting the scholarship by the President of the Management Board of KGHM Polska Miedź S.A. is exemplary sporting achievements and orientation towards increasingly better results.

In 2019, 15 athletes selected by the Ministry of Sports and Tourism, 5 athletes selected in the Copper Basin Region were granted scholarships for exceptional sporting achievements.

“Two Hours for the Family”

The “Two Hours for the Family” campaign associated with the International Day of Families of 15 May conducted by the Humanities Institute has already had 8 editions. In 2019 more than 800 companies from 15 countries with personnel exceeding 1 million people participated in the celebrations. In 2019, two KGHM Polska Miedź S.A. divisions spanning 9 Group companies joined the undertaking for the first time.

The campaign is a good fit with KGHM’s policy of supporting employees and their families; its goal was to inspire employees to strengthen their family relations, promote family values and the feeling of responsibility for others.

People and the environment


Human capital is our crucial and most important resource and as such people are subject to special protection and are at the centre of attention of the Company’s corporate bodies. KGHM Polska Miedź S.A. aspires to create an organizational culture whose cornerstone is cultivating relations predicated on absolute respect for employees’ dignity and personal rights regardless of their place of work and professional status.

KGHM Polska Miedź S.A. recognizes, respects and observes human rights - including employee rights. The Company has undertaken to operate in accordance with the UN Universal Declaration of Human Rights. The KGHM Declaration on Human Rights Protection defines our approach to human rights protection. Employee dignity and personal rights are subject to absolute protection, and any mutual relations are based on respect thereof. As a global company operating across the world’s markets, KGHM applies standards of work and employee relations as stipulated by the local law, as well as by international institutions, such as the International Labour Organization (ILO) or UN Global Compact. Regulations and policies take account of the interests of employees and mutual relationships, based on the best practices, irrespectively of the jurisdiction of the Company’s place of operation.

KGHM Polska Miedź S.A. applies impartial and fair criteria of employee assessment, being guided by knowledge, professional skills, social skills and the quality of work. The Company’s culture has created a work environment and venue free from discrimination. No form of discrimination is tolerated, in particular due to gender, race, age, origin, religion, handicap, world view, sexual orientation, social status, marital status, disability, political party and trade union membership and the form of employment.

In the KGHM Group, people – employees - are the most valuable asset

The rules:

  • Compliance with the labour laws of the jurisdictions in which the KGHM Polska Miedź S.A. Group operates, as well as with the standards of our internal labour regulations.
  • Compliance with the regulations concerning working time and minimum wage.
  • Respect for employees’ rights to associate in employee organizations and trade unions, and to engage in collective bargaining.
  • To foster employee development and support them in improving their skills through a variety of training forms and possibility to participate in new projects.
  • Respect for human rights and impermissibility of any forms of illegal or forced labour, including child labour.


Employment in KGHM Polska Miedź S.A. at the end of 2019 amounted to 18,539 people, and was 0.2% higher than at the end of the prior year. Average annual employment in KGHM Polska Miedź S.A. amounted to 18,444 and was higher than the level of employment in 2018 by 113 people. 

Average employment in KGHM Polska Miedź S.A.




`Change (%)


12 440

12 433


Metallurgical plants

3 635

3 600


Other divisions

2 369

2 298


KGHM Polska Miedź S.A. 

18 444

18 331


Wzrost zatrudnienia w KGHM Polska Miedź S.A. spowodowany jest głównie:

  • increasing need for qualified employees in order to develop and implement application and infrastructural projects for the entire Group (among others the KGHM 4.0 Program, implementation of the ECM/BPM platform, implementation of the Integration platform, the SKD CCTV System and the Printing System),
  • increased need for qualified employees in order to continue development of the Żelazny Most Tailings Storage Facility, as well as development of the circular economy concept in the Company.


In 2019, the companies of the Group employed 34,329 people, or a decrease by 0.2% as compared to the prior year. The employment structure is presented below

Average employment in the Group




Zmiana (%)

KGHM Polska Miedź S.A.

18 444

18 331



1 944

2 037


Sierra Gorda S.C.M.1




Group companies in Poland

13 137

13 228


Other Group companies





34 328

34 396


1 Sierra Gorda S.C.M. – employment proportional to share in the company (55%)

Structure of employment in the Group in 2019

Companies in Poland

W 2019 r. przeciętne zatrudnienie w spółkach krajowych Grupy Kapitałowej KGHM Polska Miedź S.A. obniżyło się, w stosunku do roku 2018, o 74 etaty (tj. 0,6%). Zmiana dotyczy głównie stanowisk robotniczych i spowodowana jest trudnościami w pozyskaniu na rynku pracowników o odpowiednich kwalifikacjach, a także dostosowaniem zatrudnienia do bieżących potrzeb. 

Companies abroad

In the companies outside Poland, average employment in 2019 decreased as compared to 2018 by 90 positions (or by 3.2%). 

This was the result of a drop in employment by 93 people in KGHM INTERNATIONAL LTD.  

The reason for the decrease in employment in KGHM INTERNATIONAL LTD. was the reorganisation in the Sudbury mines, and mainly the suspension of mining from the Morrison deposit.

International mobility policy in the KGHM Polska Miedź S.A. Group

As a result of the acquisition of assets outside Poland, since 2015 KGHM Polska Miedź S.A. has conducted an employee mobility program. In view of the international operations of the KGHM Polska Miedź S.A. Group, a policy of international mobility has been adopted as the basis for action in conformity with the due diligence procedure. Being delegated to companies in Chile, Canada and the US represents an investment of major significance for the KGHM Polska Miedź S.A. Group. The policy not only satisfies the local requirement for personnel, but also develops the employee’s professional potential. In 2019, 19 employees in total were delegated, of which 6 returned, 8 continued the delegation started before 2019, and 5 started their delegation. The skills and knowledge of employees delegated to work in international entities of KGHM in 2019 were directly related to the metal production process.

Work Regulations in KGHM Polska Miedź S.A.

KGHM Polska Miedź S.A. has Work Regulations in place which define the organization and management of the labour process as well as the related rights and obligations of the employer and employees. The regulations define the manner and rules of accounting for working time and the granting of holidays, as well as the time and manner of remuneration. They define the rules of occupational health and safety. Moreover, the work regulations describe procedures for managing rewards and distinctions, as well as penalties for breaches of work order and discipline.

HR Policy in KGHM Polska Miedź S.A.

An HR Policy has been defined for the Parent Entity, which underscores that the Employees of KGHM are its most valuable capital – it is they who create the unique corporate culture and build the Company’s market position.In order to secure the achievement of its strategic objectives, the Company has for many years consistently invested in the labour market and actively influenced the process of young people’s education. The company acts with due diligence towards its employees, since it is people that play a key role in the development of all areas of the business model, build the global standing of the Company and make us an integrated organization open to the future. KGHM recruits the best experts and specialists. As a result, the Company employs people with the greatest potential, who can truly respond to the Company’s needs. The work of each of these persons is equally important to the success of the entire organization. 

The uniqueness of the pursued HR policy is attested to by the fact that KGHM Employees are people who not only are talented and highly qualified, but also act in conformity with KGHM values, are open to changes, seek innovative solutions, and are willing to share their knowledge and experience. Most importantly, however, KGHM Employees, regardless of their job titles, see their personal development as a challenge which contributes to the benefits achieved by the entire organization.

The development of KGHM has also driven changes in human capital management inside the company. Recently, the implementation of the HR policy has been modified. A consistent set of key processes and tools have been implemented to support long-term development of skills, new solutions have been prepared for employee performance and assessment management, internal communication has been improved, and focus has been made on modern project, program and portfolio systems. In view of the Company’s swift development, it has become a priority to identify the best employees efficiently, and then systemically prepare them to assume key roles and functions in all business operations.

Lecture of Ken Canfield in the KGHM Head Office  

KGHM Polska Miedź S.A. organized a lecture for its employees delivered by Ken Canfield PhD, entitled “Between a Despot and a Hen-Pecked Husband – what it means to be an effective dad” in the Company’s headquarters in Lubin.

The goal of the meeting was to discover the importance of the role of fathers in lives of children and to inspire fathers to be effective dads and mothers to provide the optimum support to their partners in building good relations with children. Ken Canfield from the US answered a question what it meant to be a father in the modern world. 

The seminar was used to exchange knowledge on the subject of fatherhood, learn about the role of a father for children, the family and the society and a platform to share thoughts and ask questions to an expert.

In 2019, the employees of KGHM Polska Miedź S.A. were assured of:

  • the possibility to pursue educational programs to develop professional, managerial and specialist skills,
  • the possibility to improve their qualifications thanks to co-financing of studies, including: co-financing of MBA studies - 21 people,
  • organization of two post-graduate programs dedicated to the needs of KGHM Polska Miedź S.A.:
    • “Processing of Mineral Resources - Processing of Solid Minerals” in cooperation with AGH University of Science and Technology in Kraków (26 persons),
    • post-graduate studies entitled “Company financial security” in cooperation with the Warsaw School of Economics (62 persons),
    • co-financing of individually chosen post-graduate studies (36 persons),
    • co-financing of higher education (16 people).
  • improvement of language skills of all Company employees (provided to 18,000 employees) thanks to access to online e-learning tools.

KGHM as a global company gives a unique opportunity to persons who want to gain access to state-of-the art technologies and equipment. They can do so by participating in the work of specialist project teams. Working in such a team is also a perfect opportunity to share knowledge and experience within the Company.

HR projects in KGHM Polska Miedź S.A. 

Competent in the mining-metallurgical sector.

KGHM – a key partner in professional education

In 2019, KGHM Polska Miedź S.A. continued cooperation with secondary schools involved in technical and sector education, and expanded the program „Competent in the sector” to include an additional two schools from the Polkowice powiat (county). In classes where KGHM is a patron, in academic year 2019/2020 more than 1650 students are being educated which, thanks to cooperation on the employer-school line, have the opportunity to engage in practical vocational training, participate in lessons taught by experts and visits to the Divisions of KGHM to enhance their professional knowledge, as well as access to a scholarship program.  

As a result of the introduction of this program the area of education has been adapted, in terms of professional training, to the needs of the workplace, and in particular to those of KGHM Polska Miedź S.A. The measurable effect of this cooperation was the expansion by the Ministry of National Education in 2019 to include the mine-related professions „underground miner of minerals other than bituminous coal” and „technician of underground mines of minerals other than bituminous coal”, whose educational profiles have been adapted to the technology of extracting metals ores.

Dual education


In 2019, based on a letter of intent entered into by KGHM Polska Miedź S.A., Katowicka Specjalna Strefa Ekonomiczna S.A. and the Powiat (County) of Głogów, under the project „POWER KSZTAŁCENIE DUALNE – DOBRY START W ZAWODACH BRANŻY GÓRNICZO – HUTNICZEJ” (Power dual education – a good start in professions in the mining-metallurgical sector), a pilot Model Program of practical professional education in the profession of Metallurgical Technician was carried out. Lectures and workshops were conducted throughout the school year on the grounds of the Głogów Copper Smelter and Refinery Division by supervisory personnel from individual areas and comprised the entire copper production line as well as those of the crude lead and precious metals production lines. The Program concluded in June 2019 with an examination and the presentation of assessments. The conclusions generated by the program were sent to the Katowice Special Economic Zone in the form of a report. 

La Serena


KGHM Polska Miedź S.A., in the process of strengthening its global position and expanding its business and social contacts, decided to initiate educational and technical cooperation with the University of La Serena in Chile. A result of this was the organisation in July 2019 of a summer school for mining students. More than a dozen students participated in activities organised by the AGH University of Science and Technology in Kraków and the Earth Sciences Faculty of the University of Wrocław. While in Poland, the students also had the opportunity to visit the Divisions of KGHM Polska Miedź S.A. 

eKariera (e-Career)


Work continues on enabling external access to the entire eKariera system.             Two further modules were added to the already existing eRekrutacja (eRecruitment) module: Probationary period employment (Staże) and graduate theses work (prace dyplomowe). 

Implementation of the remaining modules - individual and group internships (praktyki i praktyki grupowe) - and completion of the work is expected in the first half of 2020. 

4E Skills Academy 


The program Developing strategically - 4E Skills Academy trains leaders in KGHM Polska Miedź S.A.

The four key directions of development defined in the Company’s strategy of flexibility, efficiency, ecology and e-industry were the inspiration for creating the 4E Skills Academy. This academy is aimed at supporting managers in developing the skills required to advance the strategic goals of KGHM Polska Miedź S.A.  

The first meeting covered trends and their impact on the economy as well as on employers. The inaugural Academy’s workshops were dedicated to “Skills of the future”. A team of experts from various areas in our organisation looked at factors of change and developed, under the direction of specialists in research into the future of the marketplace, key directions for our organisation.

Subjects of subsequent meetings were leadership in challenging times and the pressures which are a permanent feature of business reality. The challenges facing managers in a variable, rapidly-changing environment require the skill to recognise and predict cause-and-effect factors, to comprehend global economic, cultural and political trends and critical thinking, and are included in the tasks of the 4E Skills Academy for 2020.


Companies in Poland

In 2019, actions were taken in terms of global projects introduced in prior years, comprising all of the companies in Poland, such as recruitment principles using the e-Rekrutacja system.

In addition, each of the companies advanced its own HR projects. These involved areas such as enhancing professional abilities and qualifications, skills and improving productivity, alongside the utilisation of motivational tools. To address problems associated with acquiring employees, cooperation was launched with external institutions: vocational schools, schools of higher learning and employment offices.


In 2019, the following HR projects were advanced in the companies of the KGHM INTERNATIONAL LTD. Group:

in Canada and the USA

  • annual assessment and review of findings, including an analysis of wages, STIP and LTIP concerning Canada and the United States, 
  • support of the HR function in the process of reorganisation in the Sudbury mines as a result of suspending mining from the Morrison deposit,
  •  support of the HR function in the process of replacing the entity which provides medical services for employees in the USA (Robinson and Carlota mines), 
  • replacement of the entity providing tax advisory services in employment-related matters.

in Chile 

  • migration to a new HR system, SAP – a project aimed at optimising HR activities and ensuring better informational services or support for employees (concluded in December 2019), 
  • an application program for student internships in 2019, aimed at assisting the children or relatives of employees, who complete their academic education (15 students), 
  • a program of professional integration compliance, pursuant to legal requirements in Chile – these laws serve a social function and require companies to employ people with certain disabilities. The company met this requirement with the support of an advisory firm by determining which employees have a certain degree of disability (7 employees).

Human capital and risk on the international market

The global nature of the KGHM Group also translates into risk related to human capital. The Company wants to recruit and retain the best employees necessary among other things for the execution of development projects. The effectiveness of recruitment processes is also undergoing constant improvement. Since 2015 an employee mobility program has also been in place. It defines in detail the rules of delegating employees abroad. The program guarantees the consistency of human resources management policy with best market practices and ensures continuity of risk management (including legal, tax, immigration risks) in the process of delegating personnel to work abroad. In employee international mobility there is an opportunity to transfer knowledge, experience and best practices among the KGHM Polska Miedź S.A. Group’s companies. 

Career and recruitment management in KGHM Polska Miedź S.A. 

KGHM Polska Miedź S.A. secures highly qualified personnel through the process of internal and external recruitment. It protects the KGHM brand as an employer of first choice for current and prospective employees.

The company acts in accordance with due diligence rules and it keeps an electronic register of job candidates based on the announcements published at The electronic registration of candidates comprises job vacancies announced by all Divisions of KGHM Polska Miedź S.A. In order to submit an application the candidate should complete the electronic template containing the necessary personal data and the requirements for the job for which the candidate is applying. Online registration is considered as valid if the application was completed within the set term, after entering by the candidate of all necessary data, confirmed in accordance with the information sent to the candidate by the system. KGHM Polska Miedź S.A. is not liable for any inability to register the application due to Internet failures, server overload, server failures and other cases of this type. Candidates are obligated to express consent to the processing of their personal data contained in the online application for the purposes of recruitment by KGHM Polska Miedź S.A., in conformity with the Act of 10 May 2018 on Personal Data Protection (Journal of Laws of 2018, item 1000) and the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons in connection with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (GDPR).

The Company ensures full discretion to candidates who submit applications and reserves the right to contact only selected persons. No information within the term set in the job announcement means that the application was not accepted. Candidates whose applications have been accepted are notified separately of the date of their job interview. Candidates who successfully pass their job interview may be, upon the candidate’s consent, entered in the Central Base of Candidates. The application is stored in the Central Base of Candidates for a period of 12 months. Changes and updates of the stored application are made on the candidate’s request. Personal data collected during electronic recruitment of candidates are used only for these processes and are not made available to third parties. The Candidate’s Communication via the portal is encrypted with SSL protocol with the use of a certificate issued by a trusted certification centre. The electronic recruitment system in KGHM provides for the safety of the candidates’ stored data and for compliance with the requirements of the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation, hereinafter: GDPR). The candidate’s attempts to obtain access to the server, attacks blocking its functioning, breaking through the security mechanisms, interception, theft or destruction of the data of registered candidates are prohibited. Any such action results in disqualification from the recruitment process.

Training processes in KGHM Polska Miedź S.A.

The KGHM Polska Miedź S.A. Group does not have in place a shared Training Policy. In view of the international scope of activities, cultural differences and specific characteristics of the industries in which the Group operates, each Company conducts a series of activities related to employee training. The purpose of employee development activities in KGHM in 2019 was to retain and improve human capital and to manage the Company’s intellectual capital taking into account the Company’s new strategic directions in this process: 4E (Elasticity (flexibility), Efficiency, Ecology - safety and sustainable development, E-industry) as well as its long-term development plans through:

  • Securing fulfilment of the requirements defined in regulations by the employees’ participation in periodic training courses on occupational health and safety, courses and examinations entitling to take up jobs in underground mines which require specialist actions as well as other jobs in the company.
  • improving employee skills by the organization of training courses and other development activities, with particular focus on linguistic, managerial and interpersonal skills, as well as training on business process orientation in management.
  • improving the qualifications of the Company’s employees and changing their education structure by continuing to co-fund graduate and post-graduate studies.

The Company’s employees may improve their qualifications in the context of expected organizational and technological changes by participating in training courses, conferences, studies and post-graduate studies. The employer ensures high level of training among others by aligning the contents of the training courses with the business goals. 

When planning activities, the Company focuses on ensuring that they fit in the best possible way to the execution of the adopted strategic priorities.

ystemic competence development activities are performed by a centralized unit specialized in this area. Development needs are established regularly and constitute the basis for building a training plan and calculation of the resources needed for its performance. These actions are performed on the basis of the procedures existing in the Company and are registered for purposes of internal and external accounting. Both the competence development activity and the utilization of the allocated budget are regularly monitored and the results are reported.

In 2019 the number of employees participating in a single training event was 31,066, of which 20,994 in blue-collar jobs and 10,047 in white-collar jobs.

In 2019, 1,038 employees took part in industry symposia and conferences in Poland and abroad in order to become acquainted with new technological and organizational solutions, as well as exchange experiences with regard to performance, improvement of production efficiency, human capital management and innovativeness. The Company’s employees participated in cyclically organized conferences such as: “Winter School of Rock Mass Mechanics” and “School of Underground Mining” or the “Economic Forum” in Krynica Zdrój. 

Employees were afforded the opportunity the develop their skills through co-funding of the courses of higher study, post-graduate studies and MBA studies. 157 persons benefited from co-funding of their studies in 2019. 

The development of skills through the co-funding of higher courses of study spanned the following:

  • MBA studies - 21 people,
  • organization of two post-graduate study programs dedicated to the needs of KGHM Polska Miedź S.A. administered in collaboration with Poland’s largest universities:
    • post-graduate studies entitled “Processing of Mineral Resources - Processing of Solid Minerals” in cooperation with AGH University of Science and Technology in Kraków 26 persons,
    • post-graduate studies entitled “Company financial security” in cooperation with the Warsaw School of Economics 62 persons,
  • post-graduate studies 36 persons,
  • higher courses of study 16 persons.

Enhancing language skills is an important element of implementation of the cooperation and exchange plan for the Polish and foreign companies within the Group. 338 Company employees benefited from on-site language courses in 2019. To facilitate language skills development, all Company employees were given access to online e-learning tools dedicated to 18 thousand employees. 

To reach the largest group of employees we are launching e-learning training courses. The e-learning training courses we propose to our employees are one of the forms of instruction focused on expanding their knowledge. One of the greatest advantages of e-learning is that we can participate in training at a time that is convenient to us. In addition, the training contains interactive elements to facilitate comprehension and committing to memory the needed information. In 2019 KGHM Polska Miedź S.A.’s employees obtained access to e-learning training courses: 

  • Training on ethics:
    • Raining for employees in managerial jobs (people who manage other people) on ethics, prevention of irregularities in the company (in particular, corruption, abuse and discrimination) and receiving whistleblower reports,
    • Training for employees in white-collar and blue-collar positions (people with computer access) on ethics, prevention of irregularities in the company (in particular, corruption, abuse and discrimination) and submitting whistleblower reports concerning irregularities utilizing the channels in place in the company.

Training courses were devoted to material issues such as: abuse and discrimination, protection of whistleblowers and reporting irregularities in the company, corruption and conflict of interests, security of information and cybersecurity.

  • Training on Information Security Policy (Information Security Policy based on the ISO 27000 standard). This interactive training course is earmarked for all employees of KGHM Polska Miedź S.A who use computers in their daily work. This course aims to inculcate safe behaviours on the web. E-learning training courses provide for an interactive form of learning and contain numerous additional materials, short video clips, case studies and exercises.

Safety Policy in the KGHM Polska Miedź S.A. Group

The life and health of employees and workplace safety in general is the chief priority in the hierarchy of values of the KGHM Polska Miedź S.A. Group. For several years the Company has advanced its vision of “Zero accidents due to human and technical errors, zero occupational illnesses among our employees and contractors”. As a result of the adoption in December 2018 of a new strategy to the year 2023, in 2019 a conceptualisation of the strategy in the area of occupational safety was prepared through formulation of the Employee Safety Improvement Program – “Think About The Consequences” as well as a Program to prevent the most common hazards to workplace safety by utilising innovative technology.

The Company applies high OHS standards, both towards its own employees as well as towards those providing services on the grounds of KGHM Polska Miedź S.A. Each of the Company’s Divisions has implemented a safety management system which is compliant with standards in force to date, and in 2019 preparations commenced to implement in KGHM Polska Miedź S.A. a new OHS standard compliant with the ISO 45001:2018 standard. All work stations have identified threats. The Company has assessed occupational risks and updates them continually. Working environments are continually monitored and periodic reviews and potential threat assessments are conducted, as well as reviews of equipment and required technical checks and approvals. Employees undergo systematic training and continually enhance their qualifications. 

In 2019, the Company recorded a slight increase in the total number of workplace accidents*, with a year-on-year increase from 297 to 299 injured (+2). At the same time the number of workplace accidents in 2019 in KGHM Polska Miedź S.A., excluding accidents due to natural causes (rock bursts, destressings, tremors, rock falls) was lower by 31 (a drop from 279 to 248). The vast majority of workplace accidents (98%) qualified as light injuries, caused mainly by rock falls followed by loss of balance by employees, as well as contact (striking) with or by moveable/ immoveable objects. 

Natural hazards associated with the underground mining of copper ore deposits, in particular hazards related to mining tremors and their potential effects in the form of rock bursts and roof collapses are considered as particularly important from the safety point of view, as their occurrence can lead to serious or even fatal injuries as well as damage to underground machinery, equipment and infrastructure, along with production downtimes. The Company for many years has carried out a variety of preventive actions in its mines involving the intentional provoking of roof collapses and rock falls, comprising systematic seismological observations, on-going assessment of the rock mass and the marking off of areas of particular threat of roof collapse. The size, shape and number of chambers and inter-chamber pillars is selected, as well as the most advantageous direction of mine work advance and the optimum order of ore selection to minimise local concentrations of stress in the rock mass. So-called active methods of preventing uncontrolled roof collapses and rock falls are also applied, based on provoking dynamic events through mass blasting of mining faces and through blasting to release stress in the orebody or its roof. In 2019, in the mines of KGHM Polska Miedź S.A. a total of 51 minor workplace accidents were recorded, resulting from natural hazards from the rockmass. These incidents represented 20% of all workplace accidents in the mines during this period. KGHM Polska Miedź S.A. is continuously improving its safety record in the mining of the copper ore deposit. 

The LTIFRKGHM ratio (Lost Time Injury Frequency Rate KGHM) in 2019, or the total number of workplace accidents (as defined by the Act dated 30 October 2002 on social insurance due to workplace accidents and occupational illnesses) in the Company, being the number of accidents per million hours worked for the entire core business of KGHM Polska Miedź S.A., was at the same level as that achieved in 2018 – 10.30 – and at the same time was lower by 45% than the amount recorded in 2010:

LTIFRKGHM ratio in the Parent Entity in 2010-2019

KGHM INTERNATIONAL LTD. regularly reviews the principles underlying the operations of the OHS section. It is focused on finding a means of standardising the reporting and monitoring of the state of safety in the individual international assets, in such a way as to ensure the data can be collated and comparable with one another.

In 2019, a total of 31 incidents at work were registered in the mines supervised by KGHM INTERNATIONAL LTD. in Canada and the United, while the TRIR ratio amounted to 2.8. In 100% of the cases these were incidents of a minor nature without serious consequences for the employees.

In Chile, KGHM Polska Miedź S.A. conducts mining operations in two entities, which have separate systems of OHS management adapted to the legal requirements and mining conditions in this country. These systems encompass both the employees in these entities as well as sub-contractors, and are aimed at achieving the long-term vision “Zero harm”. In KGHM Chile SpA, which oversees the Franke mine, and which also engages in its own exploration and other activities, three workplace accidents were recorded in 2019, with a TRIR ratio of 0.31. In the joint venture company Sierra Gorda S.C.M., 16 workplace accidents were recorded in 2019, with a TRIR ratio of 0.36.

In 2019, in the entities in which KGHM Polska Miedź S.A. conducts mining operations in Canada, the United States and Chile, a total of 50 workplace accidents were recorded. The consolidated TRIR ratio (Total Recordable Incident Rate) for these operations reached 0.77. This was 0.23 lower as compared to 2018 and at the same time 75% lower than the level recorded in 2010

TRIR1 ratio in KGHM INTERNATIONAL LTD. in 2010-20191 

1 TRIR (Total Recordable Incident Rate) calculated using accepted methodology as the number of accidents at work meeting the conditions of registration as defined in the ICMM (International Council on Mining & Metals) standard, in total for the employees of KGHM INTERNATIONAL LTD., KGHM Chile SpA and Sierra Gorda S.C.M. and sub-contractors for these entities, per 200,000 worked hours.

The KGHM Polska Miedź S.A. Group has defined significant risks and their mitigation in the area of safety. Information about key risks and their mitigation are described in this Report in the section “Comprehensive Risk Management System in the KGHM Group”.

OHS Golden Rules

The KGHM Polska Miedź S.A. Group has prepared and applied OHS Golden Rules. 

Occupational Safety Council of KGHM Polska Miedź S.A.

The Parent Entity’s employees are represented in the Occupational Safety Council whose functioning is based on the principles of mutual trust and cooperation. The Council is the opinion-making and advisory authority with respect to matters of occupational safety and health. It consists of 40 persons, including representatives of the employers (Divisions), representatives of the trade unions operating in the Company and the Company Voluntary Labour Inspectors in KGHM Polska Miedź S.A.’s Divisions. The responsibilities of the Occupational Safety Council include among others periodic assessment of occupational safety and health in the Company, submitting opinions on preventive actions and formulating conclusions with respect to improvement of the working conditions. At each facility of KGHM Polska Miedź S.A., the representatives of the employer, employees and medical services who are members of the Company Committees for Occupational Safety and Health perform periodic reviews of the working conditions, assess occupational safety and health and draw conclusions with respect to improvement of the Divisional working conditions. Since 2016, current occupational safety issues have been discussed at each meeting of the Supervisory Board of KGHM Polska Miedź S.A. In 2019 and previous years the OHS area was analysed many times using a variety of procedures. An ongoing assessment of occupational safety in the Company is made at weekly meetings of the Vice President of the Management Board (Production) and at monthly meetings of the Management Board with the management of all the Divisions.

Zero Harm Policy of KGHM Polska Miedź S.A. 

Risk management, including the principle of prudence, is an essential element of our business. KGHM strives for minimization of any threats to its employees, local communities and the environment (Zero Harm Policy). The best facilities are those with the highest level of safety. Employees in the copper ore mines of KGHM Polska Miedź S.A. work in difficult conditions and are exposed to a great number of various hazards. Natural hazards connected with underground mining of copper ore deposits are among the most important threats to the life and health of employees of KGHM Polska Miedź S.A. Specifically, the threats connected with rock mass tremors and their potential impact in the form of rock bursts and roof collapses are considered to be very important in terms of safety as they may lead to serious or fatal accidents, damage to machinery, equipment, and underground infrastructure, as well as mining downtimes. Since employee safety is our priority, the KGHM Polska Miedź S.A. Group has been taking a number of preventive and protective measures. Regular seismic observations are conducted in the mines based on a well-developed network of underground and surface-based seismic monitoring stations, encompassing all the regions and mining areas. The Company has implemented an integrated model of occupational safety and health management. The following entities are involved in it: 

  • company Occupational Safety and Health service;
  • the Mine-Smelter Emergency Rescue Unit of proven world-class excellence,
  • Miedziowe Centrum Zdrowia S.A., an entity providing specialized medical services;
  • research and development unit, KGHM Cuprum Sp. z o.o. CB-R;
  • accredited laboratory of Centrum Badań Jakości Sp. z o.o.;
  • An entity specialized in rescue services equipped with its own medical facilities.

Good cooperation practice within the KGHM Polska Miedź S.A. Group 

Our employee safety is the top priority of the value hierarchy of the KGHM Polska Miedź S.A. Group as well as one of the pillars of the Corporate Social Responsibility Strategy. Research and development initiatives are focused on the improvement of occupational safety. All standards and legal regulations in the area of occupational safety and health are complied with, and in the selected areas our own, even more rigorous rules, are applied. In view of our business profile, interference in the environment and care for our employees, we set ourselves ambitious goals, the achievement of which translates into concrete effects in terms of improvement of work and occupational safety conditions. Our focus on respect for life and health improves efficiency and effectiveness and ensures continuity of production, which is essential in the mining and metallurgy industry. Moreover, the highest standards in the area of Occupational Safety and Health pertain not only to the Company staff, but to all entities providing services to the KGHM Polska Miedź S.A. Group.

Diversity Declaration of KGHM Polska Miedź S.A. 

The KGHM Polska Miedź S.A. Group does not have in place a shared Diversity Policy in written form. Taking into consideration the international nature of our activities, cultural differences and specific natures of the Group’s industries, each company has been performing a number of actions in the area of respect for diversity. In view of the above, the independent Diversity Declaration has been defined at KGHM Polska Miedź S.A. 

The Company complies with the prohibitions of discrimination and takes actions in order to ensure respect of diversity in the workplace. It creates an organizational culture based on mutual respect, equality, access to development opportunities and optimal use of employee talent regardless of ethnic origin, age, gender, nationality, citizenship, religious orientation, political convictions or trade union membership, among others. It aims at ensuring reasonable diversity both in the selection of personnel (including in the recruitment process), with special focus on knowledge, technical competence and social skills. 

The Parent Entity guarantees the implementation of the diversity principle across the KGHM Polska Miedź S.A. Group, and promotes and popularizes these values among its stakeholders and business partners.

The management of diversity also pertains to members of the Supervisory Board and Management Board of KGHM Polska Miedź S.A. The management and supervisory teams are composed of persons of different gender, age and experience. More information on the approach to diversity in the supervisory bodies is presented in the Statement on Corporate Governance in The Management Board’s Report on the activities of KGHM Polska Miedź S.A. and of the KGHM Polska Miedź S.A. Group in 2019.

Declaration on human rights protection of KGHM Polska Miedź S.A. 

The KGHM Polska Miedź S.A. Group does not have in place a shared Human Rights Protection Policy. Taking into consideration the international nature of our activities, cultural differences and specific natures of the Group’s industries, each company engages in a number of actions to protect human rights. Consequently, an independent Declaration on Human Rights Protection has been defined at KGHM Polska Miedź S.A. 

KGHM Polska Miedź S.A. declares that it recognizes, respects and promotes human rights wherever it conducts its business. It does not tolerate any violations of human rights. We undertake to operate in compliance with the United Nations’ Universal Declaration of Human Rights and other norms and standards, including the statutory and executive regulations of the home countries of our business operations.

KGHM Polska Miedź S.A. is a global organization, aware of the importance of respect for human rights in the modern world. The Company accepts responsibility for protection and respect for fundamental human rights and implements such standards across the KGHM Polska Miedź S.A. Group. It also assumes that respect for human rights by other entities is a vital element of mutual relationships.

In compliance with the adopted principles, each employee and collaborator of the KGHM Polska Miedź S.A. Group is responsible for ensuring that in his/her closest environment human rights are respected, and any infringements are reported according to the agreed procedure. This Declaration is the basis of our approach to human rights. It supplements and consolidates the human rights issues contemplated in other policies and guidelines of the Company, such as the Code of Ethics, the Diversity Declaration, HR and the Responsible Supply Chain Policy.

The Declaration is implemented in the following manner:

  • each employee provided with access to a computer receives the adopted declaration electronically, via the Company Document Circulation System,
  • employees with no access to a computer for work purposes are informed of the declaration implementation via extranet (accessible to all employees) and by their direct superior.

Infringements are reported as follows:

  • Employees have the right and obligation to report an infringement of the Declaration on Human Rights Protection to their direct superiors,
  • Employees may report infringement to the trade unions operating in the Company (in KGHM Polska Miedź S.A. there are 15 trade unions, which have established 48 company trade organizations; the trade union membership percentage ratio in the Company is 88.6%). KGHM Polska Miedź S.A. acts in compliance with the Collective Bargaining Agreement
  • infringements may be reported to the Occupational Safety and Health Committee,
  • Employee Council Institutions and whistleblowers are present in the Company,
  • to the State Labour Inspection Service (PIP).


Company collective bargaining agreement (CCBA) of KGHM Polska Miedź S.A. 

The CLA specifies the conditions to be met by the employment relationship, in particular: working hours, holiday and additional leave, remuneration rules, protection of working conditions, benefits associated with employment and rules of their assignment and provision, benefits for former employees, old-age and disability pensioners and members of their families, and mutual obligations of the parties to the Agreement.

The new Strategy of KGHM Polska Miedź S.A for the years 2019-2023 comprises 6 strategic areas. One of those areas is “People and the Environment”, which relates to, inter alia, the Company’s sustainable development. Its major objective is to grow based on the idea of sustainable development and safety and to enhance the Group’s image as a socially responsible organization. The effectiveness of the “People and the Environment” strategic area is measured by:

  • a minimum level of annual improvements in LTIFR (for domestic assets) and TRIR (for overseas assets),
  • maintaining a participation budget at the level of 20% of the amount of deduction for donations from the minerals extraction tax by 2020, 
  • the level of the KGHM Group’s employees’ dedication and satisfaction, based on pre-defined measures being implemented by 2023.


Raport 2019 KGHM

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