PARTNERSHIP TEXT

KGHM Polska Miedź's business engagement in the expansion of the Port of Police – part of the Grupa Azoty Capital Group – as well as ongoing cooperation in the area of sulfuric acid, were the subject of discussions between the companies' management representatives. KGHM authorities expressed interest in investment plots, which, due to their location and planned expansion of port infrastructure, represent an attractive location for investments.

Port Police is the fourth largest port in Poland by transshipment volume, after Gdańsk, the Szczecin-Świnoujście complex, and Gdynia. The areas of the Seaport serve as transport facilities for the entire Grupa Azoty Capital Group. The area provides maritime export and import capabilities, as well as partial storage through a tank farm for raw materials essential for production in Police. Following the launch of Grupa Azoty's new complex – Polimery Police – transshipments at the port are expected to increase by over 400,000 tons annually. This represents an increase of several dozen percent. From the perspective of the Port of Police Authority, this is a significant quantitative and qualitative change.

The port is currently implementing the project “Strengthening the resilience of the comprehensive network by increasing the accessibility and efficiency of Port Police,” which will result in documentation enabling the construction of a railway hub with the necessary technical infrastructure as part of the construction of railway line no. 437 to the Seaport, and the construction of a heavy (universal) quay. The total cost of the undertaking is to amount to €3,477,582, of which nearly €1.74 million will be covered by EU funds. This project was selected under the Connecting Europe Facility (CEF) in the 2021-2027 financial perspective.

Knowledge and cooperation – these are the business pillars on which KGHM has built its position as a global leader in copper and silver production for years. As a modern, global organization, it influences the sustainable development of the world. Today, the copper company can conquer new markets and implement ambitious investment projects related, among others, to the energy transformation. The company independently carries out tasks from exploration, prospecting, and sourcing of raw materials, through their extraction, production, transport, reaching customers and stakeholders, to responsible waste management, so as to minimize its negative impact on the environment as much as possible.

KGHM conducts its operations in accordance with the idea of sustainable development and constantly strives to ensure that the entire technological chain is optimal, safe, innovative, and compliant with the idea of a Circular Economy. Its activities and commitments in these areas are outlined in its Environmental Policy and Climate Policy, the overarching goal of which is for the company to achieve climate neutrality by 2050.

Investments that contribute to the energy transformation are also key for the company. KGHM aims to diversify its energy sources, including actively utilizing renewable sources. By 2030, 50% of the electricity consumed by KGHM will come from its own sources, including renewables. The mine in Sierra Gorda is already 100% powered by renewable energy sources. KGHM is also very actively involved in the development of nuclear energy in Poland, i.e., the construction of small modular nuclear reactors (SMRs).

In 2022, KGHM signed an agreement with NuScale Power, LLC (a nuclear technology provider) for preliminary work, constituting the first step in the process of implementing SMR technology within KGHM Group's business activities. Recently, the technology offered by NuScale Power received certification from the U.S. Nuclear Regulatory Commission, thus becoming the first SMR project approved for use in the United States and the seventh among all nuclear technologies. Polska Miedź was also the first in the country to submit an application for the assessment of small modular reactor (SMR) technology to the National Atomic Energy Agency.

Grupa Azoty is the leader of the domestic fertilizer market and one of the key capital groups in the fertilizer and chemical industry in Europe. It holds the second position in the European Union in the production of nitrogen and multi-component fertilizers, and also has a strong position in markets for products such as melamine, polyamide, OXO alcohols, plasticizers, and titanium dioxide. Investments are an important pillar of Grupa Azoty's strategy, and the largest project is Polimery Police, implemented by the special purpose company Grupa Azoty Polyolefins. This is one of the largest investments in the Polish and European chemical industry, which will enable the diversification of Grupa Azoty's business activities, positively impact Poland's position in the plastics segment, and strengthen the country's energy and raw material independence.

In 2021, Grupa Azoty published its strategy for 2030, which outlines a plan of specific actions driven by the Capital Group's climate and energy transformation. The announced strategy is the Group's response to the requirements of European climate policy. Detailed projects in areas such as green industrial energy, emissions reduction, and decarbonization are described in the key project “Zielone Azoty” (Green Azoty).