Polish copper and silver producer KGHM Polska Miedź (WSE:KGH) has been making the news lately, with bold investment and acquisition plans as part of its recently released 2055+ Strategy.
The strategy outlines an investment program of over zł32 billion ($12.25 billion) by 2030, with the maintenance of an earnings before interest, taxes, depreciation, and amortisation margin of 25.6% on average per annum between 2026 and 2030.
KGHM is focused on building a modern, diversified, multi-commodity group while maintaining its position as a global leader in copper and silver production.
This strategy is split across several areas, with one key focus on investment and another on technological advancements in production.
KGHM, together with South32 (ASX:S32), announced an investment in a fourth grinding line at the Sierra Gorda mine in Chile, which will grow the plant’s processing capacity from around 48 million tonnes to 60 million tonnes of ore per year.
This is one of KGHM’s biggest investments outside Poland and is critical to Sierra Gorda’s growth. Sierra Gorda operates as a joint venture between KGHM (holding a 55% share) and South32 (holding a 45% share). Together, the two groups have committed US$725 million ($1.05 billion) to the Sierra Gorda expansion.
KGHM is also looking to expand elsewhere, having met with Premier of Saskatchewan Scott Moe in mid-June 2026 to discuss potential project development in Canada.
CEO Remigiusz Paszkiewicz says that the company is focused on growth outside of Poland.
“We will also continue to develop our strategic projects in Chile, the USA, and Canada. We are seeking new acquisition opportunities in other locations. We have the courage to look further ahead than others. The future will belong to those who are able to act consistently, think long-term, and take responsibility for what they are building.”
The company’s investment plan will allocate around 80% of the zł32 billion to projects in Poland, with a focus on its Core Production Business, construction and expansion of mining infrastructure, modernisation of metallurgy, and investments in energy and innovation. The remainder will go toward its international assets.
Investment in the Core Production Business aligns with KGHM’s priority of long-term development and stability while also maintaining high levels of production.
“We are at a crucial moment in terms of investment. The decisions we will make today will ensure KGHM’s economically optimal, long-term operations for the coming decades,” Vice President of Development Zbigniew Bryja says.
“Technological development, diversification of raw materials, the energy transition, closer cooperation with the scientific community and start-ups, and the utilisation of our own achievements and know-how are the directions we wish to follow.”
Technological innovation and energy goals
The other end of the company’s 2055+ Strategy focuses on building KGHM into a modern production business, with cutting-edge technologies to further strengthen metals value chains and work on climate change mitigation.
The company notes that climate protection and the energy transition are key pillars of the 2055+ Strategy, with a bold goal set out to reduce its Scope 2 carbon dioxide emissions by 30%, increase its own electricity generation capacity to at least 220 megawatts, and improve energy efficiency across its production facilities.
KGHM is also targeting climate neutrality by 2050, which is supported by the company’s zero-emission and low-emission energy sources.
The company is also focused on its capabilities across research and development to provide competitive advantages. Key work includes automation and autonomisation of production processes, the development of a smart mine, a new mining system, and a digital environment for operators. Strategic funding will be allocated to projects and innovations that the company deems as potential avenues for further business development.
KGHM is a global leader in copper and silver production, with operations in Poland, Chile, the US, and Canada.
Write to Amy Rotman at Mining.com.au
Images: KGHM
