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KGHM Polska Miedź S.A.KGHM Polska Miedź S.A. The biggest producer of copper The biggest producer of copper

and silver and silver in Europein Europe

Copper 486.002 tCopper 486.002 t

SilverSilver 1100 t 1100 t

GoldGold 386 kg 386 kg

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KGHM Polish Copper SA

"LUBIN" Mine

"RUDNA" Mine

POLKOWICE -SIEROSZOWICE Mine

"GŁOGÓW" CopperSmelter & Refinery

Emergency Mine-SmelterRescue Services Division

Ore Enrichment PlantsDivision

Hydrotechnical Unit

Lower Silesian InvestmentCompany

"CEDYNIA"Wire Rod Mill

"LEGNICA" CopperSmelter & Refinery

PRG Lubin 100 %

ZM LEGMET Ltd 100 %

PeBeKa Ltd 100 %

ZANAM Ltd100 %

BGH-RM Ltd 100 %

CUPRUM 2000 Ltd100 %

0,01 % ZM LENA Ltd100 %

ResearchLaboratory 100 %

DANIPOL Ltd 49 %

9 % ANCOR Ltd 49 %

PPCW CELELINNEN49 %

Legnica Enterpr.Centre 30 %

BOART - LENA Ltd 49 %

Regional TelevisionLegnica 1 %

Polkomtel SAWarszawa 19 %

KGHM Polish CopperLtd London 100 %

KGHM Metale SA

ZAŁOMSzczecin 26 %

Polish Copper Promot.Centre SA 65 %

FPN Elpena Ltd 100 %

PHP MERCUS Ltd 29 %

"Energetyka" Ltd 100 %

Rubber ProductsPlant Ltd 100 %

Fund. Prac. KGHM 99 %

KRAPKOWICEPaper Plant 10 %

INTERFERIE Ltd 100 %

KFK S.C.Kraków 34 %

COPPERHEALTH

CENTRE SC

CUPRUM BANK SALubin 26 %

TUW CUPRUMLubin 93 %

CBPM CUPRUM Ltd100 %

METRACO Ltd. 92 %

PPH KSANTE Ltd 100 %

Polish ReinsuranceSociety S.C. 19 %

100 %

99,98 %

100 %

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CBPM CUPRUM CBPM CUPRUM

The general designer The general designer and researcher of and researcher of

LGOM copper basinLGOM copper basin

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TECHNOLOGICAL CHAINTECHNOLOGICAL CHAIN

Mining

Processing

Waste disposal

SALES VOLUMESALES VOLUME

Total 4,928 mln złCopper 3,983 mln zł Silver 772 mln zł

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Owner structure of KGHM Polska Miedź S.A.Owner structure of KGHM Polska Miedź S.A.(as at 12 January 2001)(as at 12 January 2001)

PKO BP S.A.5,38%

Domestic float

29,37%

GDR20,97%

The State Treasury44,28%

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2000 Copper Sales - Markets 2000 Copper Sales - Markets

Sweden7%

Poland37%

Others9%

Hungary4%

Austria5%

Czech Rep.6%

Germany13%

France14%

China5%

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Industrial resources

781.087 mln tonnes of ore

depth up to 1250 m

average content Cu 2,12 %

average content Ag 56 g/t

Anticipated exploitation period 20-25 years with

current production volumes

Copper Resources Copper Resources

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Lena no 1 41 ha 7 mln t

Lena no 2 88 ha 15 mln t

Konrad no 1 129 ha 18 mln t

Konrad no 2 12 ha 1,2 mln t

Konrad no 3 145 ha 16,6 mln t

Gilów 600 ha 92,0 mln t

Żelazny Most 1260 ha 525 mln t

Tailings pondsTailings ponds

Localisation of Localisation of tailings pondstailings ponds

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„„Żelazny Most” tailings pondŻelazny Most” tailings pond

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TAILINGS PONDS ENVIRONMENTAL PROBLEMS

Huge scale of the pond Dusting Contamination of surface and underground water

with salt and heavy metals in the local drainage basin

Increasing heavy metal contents in soil and plants surrounding the tailing plant

Contamination of Odra river by technological water

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LICYMIN LIFE CYCLE ASSESSMENT OF

MINING PROJECTS FOR WASTE MINIMISATION AND LONG TERM

CONTROL OF REHABILITATED SITESKGHM PM S.A. CBPM CUPRUM

G1RD-CT-2000-00162

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Life cycle assessment of mining projects for waste minimisation and long term

control of rehabilitated sites

The main objective of this project is to develop and validate a metodology to minimise the „full

life-cycle” impact of metalliferous mining projects, adopting an integrated approach to

production and process design, including waste disposal, remediation and the costs involved

GENERAL TARGET

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POLISHPARTICIPANTS

KGHM Polish Copper S.A. /CBPM CUPRUM Polish Academy of Science, Kraków

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Frame Scope of Work Updating of the existing database Conceptual LCA modelling of the production and

processing and financial modelling of these options Mining and processing alternatives will aim at

developing methodologies to improve recovery, minimise waste production and ensure safe, low risk disposal

Environmental monitoring and long term control of the impacts of the mining activities

START

MARCH 2000

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CLOTADAM Chemically Stabilised Layers

KGHM PM S.A. CBPM CUPRUM

G1RD-CT-2001-00480

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Chemically Stabilised Layers

Through forming chemically stabilised layers with properly selected lifi-time to help in

faster, more effective and more environment- friendly closing tailings pond

GENERAL TARGET

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PARTICIPANTS

KGHM Polish Copper S.A. /CBPM CUPRUMo Environmental Protection Dpt.o Environemntal Protection Management Dpt.o Tailing Ponds Dpt. Polish Academy of Science, Kraków

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Frame Scope of Work Updating of the existing database Preliminary selection of chemicals and additives Elaboration of agents and methods for their

application, including local additives Laboratory research on application conditions and

effectiveness of selected agents Pilot tests Technical-economic assesment Elaboration technology for industrial application

START

SEPTEMBER 2001

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Other programs with CBPMCUPRUM participation

NESMILIFETIME