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Good Neighbour and Trustworthy Investor

One of the possible consequence of copper ore extraction operations conducted in the mines of KGHM Polska Miedź S.A. are mining-induced earthquakes which can affect people and buildings. They are not dangerous to the environment. In the area of the operations conducted by the Company there are no zones which, due to the potential impact of mining processes, should be excluded from development in the local land use plans. The overall degree of mining impact in the Legnica-Głogów Copper District is generally low. Over the period of 50 years the ground level has sunk by only 3.5 metres. The large area pits have gentle profiles, hence the surface deformation is insignificant. The most severe impact, and most complex from the point of view of its prevention, is the occurrence of mining-induced earthquakes. In 2012, 525 of such earthquakes were recorded versus 581 in 2010 and the same number in 2011.

 

In 2006, KGHM Polska Miedź S.A. started looking for the right solutions to protect the buildings located in the areas exposed to the risk of mining-induced earthquakes. The purpose of the work was to develop industry guidelines for designing buildings in the area of the Legnica-Głogów Copper District. Between 2006 and 2008 research was conducted by KGHM Cuprum Research and Development Centre and between 2010 and 2011 experts from the Opole University of Technology and Eurocentre Pavia University worked on adapting Eurocode 8 (a European norm in force since 2004 implementing standards of designing structures for earthquake resistance) to the specificity of Legnica-Głogów Copper District. The process was required due to unavailability of the Polish annex to the norm. The task of the project team was to propose detailed supplementary rules to Eurocode 8 including, inter alia, the most important calculation formulas to be applied when designing structures resistant to seismic effects.

 

 

 

After many years of work, the successful completion of the project is drawing near. In 2012, a review of the guidelines by the Land Surface Protection Committee at the State Mining Authority began. KGHM Polska Miedź S.A. also initiated a public consultation procedure. In March and June 2012 meetings with the local authorities of Lubin were held and two seminars on the subject were organised in the Company’s head office. Their purpose was to disseminate knowledge, enhance the skills of urban planners and designers and set up a platform for discussing the impacts of mining operations. Over 60% of the event participants considered the discussions relevant for their jobs.

 

Formulation of the guidelines is another step towards safer investments in the areas affected by mining operations of KGHM. In 2004, the Company developed a Mining Induced Seismicity Scale, revised in 2011 in accordance with the suggestions of the social partners. Since 2012, a new 2004/11 Scale has been used to objectively assess the impact of seismic events on buildings and people. The Company has also appointed Coordination Teams for the Protection of Land Surface in Lubin and Polkowice whose members include representatives of local authorities, mining supervision administration, the Company’s mining plants and KGHM Polska Miedź S.A.

 

Every year, the Company’s divisions receive more than 500 requests from the Legnica-Głogów Copper District for the repair of mining damage and protection of new buildings and structures. In order to facilitate communication with the inhabitants of the area, all mining plants have mining damage departments which efficiently process all such claims. Between 2010 and 2011, the Company spent PLN 13m on repairs and prevention of damage (reinforcement of foundations of the buildings located in the area of negative environmental impact of the mines), while in 2012 the spending amounted to PLN 14m.

 

Expenditures incurred by the divisions of KGHM Polska Miedź S.A. on prevention and repairs of mining damage (PLN)

  2010 2011 2012
Lubin Mine  1 039 500  1 932 200  3 630 600
Polkowice-Sieroszowice Mine  2 471 000  3 511 000  1 258 000
Rudna Mine  2 149 600  1 965 500  2 309 300
Total  5 660 100  7 408 700  7 197 900

 

 

Number of reported mining damages and requests for preventive reinforcement received by the divisions of KGHM Polska Miedź S.A.

  2010 2011 2012
Lubin Mine  188  234  180
Polkowice-Sieroszowice Mine  187  195  165
Rudna Mine  168  135  182
Total  543  564  527

 

 

Number of settlement agreements on mining damages and preventive reinforcement entered into by the divisions of KGHM Polska Miedź S.A.

  2010 2011 2012
Lubin Mine  83  162  137
Polkowice-Sieroszowice Mine  174  180  159
Rudna Mine  33  82  50
Total  290  424  346
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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.