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Homepage / KGHM IN THE REGION / Good Neighbour and Trustworthy Investor / Dialogue on Mining Concessions

Good Neighbour and Trustworthy Investor

The idea of good neighbourhood has become very important in the context of the procedure initiated in 2010, the aim of which is to renew the Company’s mining concessions. The validity period of the copper ore extraction concessions currently held by KGHM Polska Miedź S.A. covering 87% of the areas mined at present ends on 31 December 2013. At the same time, the concluded agreements on the use of the deposits for mining purposes will expire. Yet according to the current estimations, despite 50 years of continuous exploration, the Polish copper ore resources found in the area of Legnica-Głogów Copper District can be profitably mined for at least another 50 years.

 

 

 

The issue of new concessions to KGHM Polska Miedź S.A. for the extraction of copper from Lubin-Małomice, Polkowice, Rudna, Sieroszowice and Radwanice-Wschód deposits is equally important to the Company, as it is to the whole region. The Company is the biggest employer and taxpayer in the Lower Silesian province and its continued operations are a precondition for the maintenance of the budgets of the Copper District municipalities at the current level i.e. significantly above the national average. Only in 2012 , the municipal authorities in the Copper District area received from KGHM Polska Miedź S.A. more than PLN 140m in consideration of the real estate tax, mineral extraction tax and other similar charges.

 

The procedure of preparing application documents required for the renewal of the concessions is coordinated by the KGHM Polska Miedź S.A. Project Team led by Cezary Bachowski, Geological Concessions Officer appointed by the Management Board. During the process of drafting the necessary documents and compiling the application file, the Company’s employees met with the representatives of the local authorities to discuss the content of the documents.

 

At the seminars organised by the Company which were attended by the authors of the documents, industry experts and scientists from the leading research centres in Poland, drafts of the documents were reviewed and discussed in detail. The whole process was conducted in consultation with the local authorities of nine mining municipalities on whose territories the deposits mined by KGHM Polska Miedź S.A. are located (more information about the concession process can be found in Chapter VI of the Report).

 

In November 2012, the Company received the first document of crucial importance for the concession renewal process. On the basis of the submitted reports and the consultations held with the local authorities, the Regional Environmental Protection Director in Wrocław issued an environmental decision for the copper ore mining operations. The favourable opinion of the local communities has been one of the key factors in the concession renewal process since conformance with the local plans of the municipalities is a requirement. The local authorities approved the concession applications filed with the Ministry of Environment. Without their support, obtaining concessions for the further exploration of copper ore deposits in the Copper Basin would be very difficult.

 

KGHM Polska Miedź S.A. has applied for the maximum concession validity period currently provided for by the law, which is 50 years. Additionally, as part of the efforts to expand its resource base, KGHM Polska Miedź S.A. also applied for evaluation of copper ore deposits in new concession areas totalling 1,589 square kilometres, including Bytom Odrzański, Głogów, Retków-Ścinawa and Kulów-Luboszyce.

 

Figure 6. Key stakeholders of KGHM Polska Miedź S.A. in the Copper Basin

 


 

 

Impact of KGHM mining operations on municipalities

Eight Mining Areas set up for the purpose of copper ore extraction cover the territories of twelve municipalities

 

 

 

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KGHM Polska Miedź S.A. is the winner of the Most Attractive Employer title in third edition of the Randstadt Award survey held in Poland. The high employment standards maintained in Poland will be implemented in all KGHM Group companies worldwide.