Polish copper producer KGHM is preparing two major projects covering primary ore extraction and secondary-metal recovery, with combined planned investment exceeding PLN 9.5 billion, or approximately €2.2 billion. Both developments have received strategic project status under the EU Critical Raw Materials Act.
The projects comprise a new underground mining development at the Retków-Grodziszcze copper-silver deposit and the conversion of the Legnica copper smelter into a larger integrated recycling facility. Together, they would expand KGHM’s capacity to produce copper from both mined ore and copper-bearing scrap. Strategic designation is intended to accelerate administrative procedures and improve access to financing. It does not guarantee grants or construction approval, and both projects still require further development work.
Retków-Grodziszcze Targets Long-Term Ore Extraction
At Retków-Grodziszcze, KGHM plans to construct a new underground shaft and associated mining infrastructure to access the deposit’s polymetallic ore. The project is expected to enable extraction of more than 100 million tonnes of ore by 2055. The material is estimated to contain approximately 1.5 million tonnes of copper and more than 5,000 tonnes of silver.
Advancing the mining development will require detailed engineering, completion of the remaining permitting procedures and arrangements for the substantial capital investment. The project also involves long underground development schedules, adding to the requirements for bringing the deposit into production.
Legnica Smelter Planned for Expanded Recycling
The second development would transform KGHM’s Legnica copper smelter into a larger integrated operation capable of processing copper-bearing scrap with copper concentrations ranging from 15% to 60%.
The planned facility would produce approximately 135,000 tonnes of electrolytic copper annually, alongside around 250 tonnes of nickel per year. The expansion would increase KGHM’s capacity to recover metals from secondary raw materials alongside its primary mining operations. However, the recycling project’s development will depend in part on securing sufficient quantities of suitable copper-bearing scrap. European smelters are competing for secondary raw materials as the industry seeks to increase recycled content and reduce dependence on imported copper concentrates.
Strategic Status and Project Development Requirements
The two developments require more than €2 billion in combined investment, making financing arrangements and capital-cost control important considerations as KGHM advances project preparation. Although EU strategic status is expected to support administrative procedures and access to financing, KGHM must still complete detailed engineering, obtain remaining permits and assemble the funding required for both developments.
The projects address different operational requirements: Retków-Grodziszcze involves underground mine development, while Legnica depends on establishing an expanded recycling operation and securing an adequate supply of suitable scrap. The next milestones include more detailed project schedules, permitting progress and financing structures for the planned mining and recycling investments.
