PARTNER CONTENT

The copper giant ranks among the world's most trusted silver producers. For another consecutive year, KGHM Polska Miedź S.A. has obtained the London Bullion Market Association (LBMA) certification for responsible silver production in 2022. The certification confirms KGHM's compliance with the requirements set out in the LBMA Responsible Silver Guidance and allows for inclusion on the prestigious LBMA Good Delivery list, which comprises the world's most trusted silver producers.

– The highest quality of both the product and the entire production process is the strength of the KGHM brand. Our clients know that we are a trusted partner who adheres to the highest standards throughout the supply chain. The LBMA certification confirms that this is not a matter of declaration, but of actual actions – said Tomasz Zdzikot, President of KGHM Polska Miedź S.A.

RAISED STANDARDS

The guidelines for responsible gold and silver sourcing developed by the LBMA aim, among other things, to combat human rights violations and the financing of terrorism, avoid supporting military conflicts, and ensure compliance with the highest possible anti-money laundering standards. These guidelines recommend the use of a five-stage, risk-based procedure for examining the supply chain, in accordance with the OECD Guidelines for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

As part of the certification process, an attestation service was required from an independent auditing firm accredited by the LBMA (PricewaterhouseCoopers Polska). The positive assessment of KGHM's procedures for silver production, storage, and sale, as well as KGHM Polska Miedź S.A.'s Policy and Procedures for Responsible Supply Chains for Gold and Silver, formed the basis for the auditor's positive recommendation for granting the certificate.

SILVER MARKET LEADER

KGHM has been among the top global silver producers for years. According to the World Silver Survey 2023, it holds first place in the ranking of "the world's largest silver mines." In the "largest silver producers" category, the copper giant secured the second position. In 2022, KGHM produced 1,298 tons of silver.

KGHM sells silver in the form of bars and granules. Customers include financial institutions, the jewelry industry, the electronics and electrical industries, the photovoltaic industry, catalyst manufacturers, and producers of coins, bars, and medals, among others. Approximately 16% of the copper giant's revenue comes precisely from silver sales.

FROM BLACK SLUDGE TO SHINY BARS

Silver production at KGHM takes place at the Głogów Copper Smelter, in the Precious Metals Department. The Precious Metals Department was established exactly 30 years ago specifically to recover precious metals – silver and gold – present in copper ore. These are found in so-called "black sludge," or anode slime, generated during the electrorefining of copper. Metallic silver is produced from cathode silver with an Ag content above 99.99 percent, in the form of granules packaged in 25 kg bags and bars weighing approximately 1000 troy ounces, which is about 31.1 kg.

PFR Ventures has invested approximately EUR 5 million in the TiLT Capital Fund 1 (Siparex Group). This is the fifth investment under the PFR Green Hub FoF program. The fund invests in innovative European companies that can accelerate the region's energy transformation. It is particularly interested in the Polish market and its growing green technology ecosystem. PFR Green Hub is one of the strategic programs of the Polish Development Fund (PFR). Its goal is to support Poland's energy transformation. One of its tasks is to invest in venture capital and growth equity teams interested in financing innovative ClimateTech projects. The program is managed by PFR Ventures, which joins the funds as a Limited Partner. By the end of 2022, PFR Ventures had invested in Contrarian Ventures, Eurazeo, BeyondNetZero (managed by General Atlantic), and the Polish company Montis Capital. The agreement with TiLT Capital Partners brings the total contribution to all funds within PFR Ventures FoF to approximately EUR 60 million). TiLT Capital Fund 1 (TCF 1) is an energy transition fund managed by TiLT Capital, based in Paris. It is part of the Siparex Group, an investment group managing assets worth EUR 3.5 billion. TCF 1, whose capitalization has already exceeded its planned amount of EUR 250 million, intends to invest between EUR 5 and 35 million in European growth-stage companies developing innovations that aid in the energy transition. The fund primarily focuses on energy efficiency, zero-emission power and heating technologies, power electronics, and technologies that enhance the flexibility of energy systems. PFR Ventures invested EUR 5 million in TiLT Capital Fund 1, alongside Bpifrance, the European Investment Bank, and the European Investment Fund. TiLT Capital Partners has already completed its first 4 investments in France and Germany and plans to invest in Polish companies focused on energy transition. "We are delighted to welcome PFR as an investor in our first growth fund supporting Europe's energy transition. PFR's participation is particularly significant as Poland is an important market. It simultaneously combines ambitions and challenges regarding decarbonization, energy security, and affordable energy for industry and citizens. Poland offers immense investment opportunities, and we are excited to support the development of Polish companies creating innovations in the field of energy transition," explains Nathanaël Krivine, Co-founder and Managing Partner at TiLT Capital Partners. "TiLT Capital joins our diversified portfolio of green investment funds. They combine the founders' many years of experience in energy transition with Siparex's experience in private equity investments. This creates a unique opportunity for innovative companies developing emission reduction technology. We are pleased that they are not only interested in the Polish market but are already exploring it. TiLT Capital can help close the growth-stage capital gap, which is even more acute for energy transition startups, and accelerate the development of green innovations in Poland." – says Małgorzata Walczak, Investment Director at PFR Ventures. PARTNER TEXT