PARTNERSHIP CONTENT

Cooperation on research and development projects and investment initiatives related to small modular reactor (SMR) technology – KGHM has signed a letter of intent with the Legnica Special Economic Zone (LSSE) in this regard. The signatories of the document will discuss the possibilities of potential joint involvement in the implementation of SMR investment projects.

In 2022, KGHM signed a preliminary work agreement with the American company NuScale Power, LLC (a nuclear technology provider), which was the first step in the process of implementing SMR technology within KGHM Group's business activities. In April of this year, the copper giant submitted an application to the Ministry of Climate and Environment for a decision-in-principle for the project to build a small modular nuclear power plant (SMR) in Poland.

“KGHM is a company with a modern approach to transformation and pro-climate solutions. We are implementing a Climate Policy aimed at achieving climate neutrality by 2050. We are proving that small modular reactors are not just a vision of the future, but a very real answer to the energy needs of large industry. Cooperation with LSSE is another step in implementing our assumptions,” said Tomasz Zdzikot, President of the Management Board of KGHM Polska Miedź S.A.

Mateusz Wodejko, KGHM Vice-President of Finance, adds that for KGHM, nuclear energy means energy independence and lower costs. “An investment in SMR will allow the company to maintain its global business advantage. The introduction of nuclear energy technology, based on small modules, also supports the energy transformation of the Polish economy,” said Mateusz Wodejko.

“Accessible, safe, ecological, and price-stabilized energy is our goal, which I believe can be achieved even faster in partnership with KGHM. This also strengthens the competitive advantage of our subregion as a place that is not only good for investment but also stable, which is particularly important for business. We have chosen the direction of ‘new technologies’ and are consistently pursuing it. The letter of intent we signed with an experienced partner is one of the elements of LSSE’s energy transformation,” added Przemysław Bożek, President of Legnicka Specjalna Strefa Ekonomiczna S.A.

The cooperation between KGHM and the Legnica Special Economic Zone will include, among others, analyses of available small nuclear reactor technologies and the search for best practices in conducting research and measurements to identify the geological and geotechnical conditions of SMR locations. Joint actions will also be taken to support the development of SMR in Poland, including changes in legislation related to public funding for such undertakings.

KGHM is awaiting the issuance of a general opinion by the Ministry of Climate and Environment regarding the selected conditions for building a modular nuclear power plant with a capacity of 462 MW, consisting of six modules, each with a capacity of 77 MW. The application was prepared, among other things, based on the documentation of a project that has just received final certification in the United States.

KGHM’s American partner, NuScale, as the first and to date the only SMR technology provider, has received certification for a 50 MW module from the U.S. Nuclear Regulatory Commission (NRC). In January of this year, NuScale applied to the NRC for certification of a 77 MW module, which it is expected to receive in 2024.

NuScale already placed the first order for the production of pressure vessel components in December 2022, which demonstrates the significant progress of this technology supplier in its actual implementation. In May 2023, on behalf of NuScale, Doosan Enerbility Co. Ltd began producing forgings for the first VOYGR-6TM power plant with a capacity of 462 MW, which is to be built in the United States in Idaho for Utah Associated Municipal Power Systems (UAMPS).

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

Investments that contribute to the energy transformation are also crucial for the copper giant. KGHM aims to diversify its energy sources, including actively utilizing renewable energy sources. By 2030, 50% of the electricity consumed by KGHM will come from its own sources, including renewables. The Sierra Gorda mine in Chile is already powered 100% by renewable energy.

Legnica Special Economic Zone is a company that focuses on attracting investors to the southwestern region of Poland, in the Lower Silesian Voivodeship, one of the most dynamically developing areas in Poland. To date, LSSE has attracted 83 investors from various parts of the world, with 1.5 thousand hectares of investment land. This has resulted in over PLN 12 billion in investments and, most importantly, over 20,000 jobs, twice as many as investors initially planned.

LSSE not only focuses on the sustainable development of the subregion but also strives to ensure safe and environmentally friendly nuclear technology, enabling the development of future energy systems, as the lack of available energy is a frequent concern for investors. Cooperation with KGHM is another step by the Legnica-based company in collaborating with and promoting firms in the sector related to new technologies, future energy, and electromobility, particularly regarding low- and zero-emission solutions and renewable energy sources.