Polish Briefing 22 August, 2019 9:00 am   
Editorial staff

Polish Briefing: Copper prices and the NPP at KGHM press conference

What goes on in Poland on the 22nd of August.

KGHM wanted to sell shares in the nuclear project. PGE closes the calls

– KGHM was willing to sell shares in PGE EJ1, but PGE closed this process – said Marcin Chludziński, CEO of KGHM, asked by about the current state of talks with the Polish Energy Group. At present, KGHM owns 10 percent of the shares in the company responsible for building the first nuclear power plant in Poland.

At the end of November 2018, Polska Grupa Energetyczna announced that the company’s management board “expressed initial interest in acquiring all shares in PGE EJ1”. The management’s goal is “operational and cost restructuring of the company and integration of operations within the PGE Group”. The message reads that the transaction will be possible after the valuation by an independent advisor and obtaining corporate consents from all entities involved.

PGE EJ1 was registered on January 28, 2010. After four years, on April 15, 2014, PGE, KGHM Polska Miedź, Tauron Polska Energia and Enea S.A. signed a contract for the purchase of shares in a nuclear company. As a result, the abovementioned companies have acquired 10 percent shares in PGE EJ1. All PGE EJ1 shareholders initially expressed their interest in selling the shares, but the talks so far have not resulted in a resolution.

Chludziński: US elections and trade war with China affect copper prices

The US-China trade war and the upcoming US presidential election are affecting global fluctuations in copper prices. The President of KGHM Marcin Chludziński noted that the company is prepared to meet market challenges.

– Market turbulence is unchanging. We take this into account when creating strategic plans and our management style. We run a business that we have an impact on in terms of production, we have an impact on costs, innovation and investment, but we have no impact on the US-China relationship. Although in terms of copper and silver production we occupy the eighth and second place in the world, respectively, we have no influence on the relationship between these countries. We are not omnipotent. This must be remembered in the context of the challenges and trends ahead of us – he said.