Polish copper producer KGHM plans to invest more than PLN 9.5 billion, equivalent to approximately €2.2 billion, in expanding its mining and metal-recycling capacity after two projects received strategic status under the EU Critical Raw Materials Act (CRMA). The investment programme covers a new underground mining development at the Retków-Grodziszcze copper-silver deposit and the conversion of the Legnica copper smelter into an integrated recycling facility. Together, the projects are intended to strengthen KGHM’s position in both primary copper production and secondary metal recovery.
New Polish Copper-Silver Mine Targets Long-Term Production
The Retków-Grodziszcze project involves the construction of a new underground shaft and associated mining infrastructure to access a substantial polymetallic ore deposit. KGHM expects the development to enable the 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.
If developed as planned, the project could expand the company’s Polish copper resource base and support its longer-term mining operations. Underground mine development requires substantial upfront capital and extended preparation. KGHM must progress detailed engineering, complete the remaining permitting procedures and establish a financing structure before the project can advance towards construction.
Legnica Smelter to Expand Copper and Nickel Recycling
The second investment concerns the transformation of the Legnica copper smelter into a larger integrated recycling operation capable of processing copper-bearing scrap. The planned facility is designed to handle scrap containing between 15% and 60% copper, with targeted annual production of approximately 135,000 tonnes of electrolytic copper and around 250 tonnes of nickel.
Expanding recycling capacity would allow KGHM to recover metals from secondary raw materials alongside its established mining activities. The project also reflects the growing importance of recycled feedstock as European smelters seek to increase secondary-metal production and reduce reliance on imported concentrates. Securing sufficient quantities of suitable copper-bearing scrap will be a key requirement for the recycling operation. Competition for these materials is increasing as industrial producers pursue greater use of recycled metals.
EU Strategic Status Supports Project Development
The designation of both developments under the EU Critical Raw Materials Act is intended to facilitate administrative procedures and improve access to potential financing from European institutions, national authorities and private investors. Strategic status does not automatically provide grants, guarantee funding or replace the need for construction permits.
KGHM still faces the task of securing financing for a combined investment programme exceeding €2 billion, while advancing the technical, regulatory and operational preparations required for both projects. The two developments also present different investment challenges. The mining project requires extensive underground infrastructure and long development timelines, while the recycling facility depends on reliable access to suitable scrap and competitive processing economics.
Copper Expansion Combines Primary and Secondary Supply
The proposed investments would give KGHM greater flexibility in sourcing copper, combining newly mined ore with recycled materials. This approach could strengthen the group’s position across the European copper supply chain, where demand for the metal remains important to industrial activity and technology-related applications. Retków-Grodziszcze would contribute to the company’s long-term primary mining capacity, while the Legnica project would expand its ability to recover copper and nickel from secondary feedstock.
The next major milestones will involve detailed project schedules, outstanding permits and financing arrangements. Although EU strategic recognition provides policy support, the projects’ commercial viability will ultimately depend on whether KGHM can control capital costs and develop both facilities on economically sustainable terms.
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