EU grants strategic status to $2.4bn KGHM copper projects
The European Commission has designated two major investments by Polish copper producer KGHM Polska Miedz as strategic projects under the EU's Critical Raw Materials Act (CRMA), the company said on Friday, as the bloc races to diversify supply chains and reduce reliance on China.
The projects, worth a combined 9.5-billion zlotys ($2.44-billion), aim to strengthen Europe's copper mining and recycling capacity and reduce dependence on non-EU suppliers.
The Retków-Grodziszcze mining project aims to extract more than 100-million tons of ore by 2055, yielding nearly 1.5-million tons of copper and over 5 000 tons of silver.
KGHM will also transform its Legnica smelter into a recycling facility with an expected annual production of about 135 000 tons of electrolytic copper and 250 tons of nickel.
The designation could provide both projects with streamlined permitting, better administrative coordination and access to preferential financing.
Michal Kozak, an analyst at Polish brokerage Trigon, told Reuters the designation was "directionally good news" for KGHM but cautioned that it was unclear whether it would lead to significant financial support.
The investments align with the bloc's Critical Raw Materials Act, which aims for recycling to account for at least 25% of the EU's annual consumption of strategic raw materials.
KGHM shares were up 4% at 0905 GMT.
