KGHM copper and silver producer signs new deal with EIB

Poland's KGHM, a copper and silver mining corporation and a WSE-listed company, has signed a PLN 440-million (EUR 98-million) annex to its earlier loan contract with the European Investment Bank.

With the new loan, the value of the potential financing granted by the EIB has gone up to PLN 1.34 billion (EUR 298 million), KGHM wrote in a statement on Friday.

KGHM is a one of the biggest global copper, silver and gold producers operating nine open-pit and underground mines in Poland, Canada, the USA and Chile. It employs about 34,000 people worldwide. Apart from copper, gold and silver, it also produces nickel, platinum group metals, molybdenum and lead.

"This additional amount will be a potential reserve, which can be used to finance our ongoing investments that are designed to secure environment-friendly, safe and stable production," KGHM CEO Marcin Chludzinski was quoted as saying.

According to EIB Deputy President Teresa Czerwinska, KGHM's investment plans will help ensure stable sales and competitive prices of important raw materials, especially copper and silver.

Czerwinska added that "sustainable access to raw materials, including copper, is necessary in order to secure the green and digital transformation of our economies." She also stated that this was in agreement with the long-range goals of EIB's credit policy.

The additional funds will be available within 22 months.