The role of copper in the modern economy

Copper is classified as a critical raw material and is one of the three most important metals on the globe – alongside iron and aluminium. The role of copper in the economy is steadily growing, and its resources are an important pillar of the security of Poland and Europe.

“Copper has recently been gaining geopolitical importance. It is a raw material that is crucial for many branches of the economy, above all for the energy sector,” the Prime Minister stressed during his visit to the construction site of KGHM’s new shaft in Retków.

Modern technologies such as photovoltaics, wind turbines, electric vehicles and digital infrastructure cannot develop without copper.

“A single wind turbine needs almost five tonnes of copper, a traditional combustion-engine car – some thirty-odd kilograms, and an electric vehicle – more than eighty kilograms of copper,” Donald Tusk explained.

The strategic raw material extracted by KGHM is also important, among other things, for the development of artificial intelligence, mobile devices, satellites, drones and medical innovations.

KGHM’s growth is a gain for Poland

KGHM plans to build three new mining shafts in the Copper Basin, which will be a breakthrough moment for the company’s further growth.

“We have to think in a strategic, long-term perspective. Our copper smelters must have work to do in the future,” the head of government underlined.

He added that the construction of a new shaft by KGHM offers hope for very substantial profits. Importantly, Polish companies will in practice be responsible for almost the entire investment.

“KGHM follows our idea of ‘repolonisation’. This means that our companies will be 90 per cent responsible for this construction. And we are talking here about work for several dozen thousand people,” the Prime Minister noted.

So that KGHM can continue to grow, the government has decided to reduce its tax burden. In October, the Council of Ministers adopted the relevant draft act.

“Copper is the property of the nation, so in some way the whole of Poland must benefit from it. But on the other hand, KGHM must develop. That is why we decided that the tax should be a smaller burden for KGHM. I am absolutely open to discussion so that, over time, the tax context becomes increasingly favourable for KGHM,” the Prime Minister explained.

Under the government’s draft law, in the years 2026–2028 the tax for companies such as KGHM will be reduced, and from 2029 these enterprises will be able to deduct part of their expenditure on new investments from tax. Thanks to this, more mines and new jobs will be created, and the regions where extraction is carried out will develop faster.

In the longer term, the state will also gain – higher investment and copper production mean higher revenues for the budget.

“I want KGHM to remain – and to an even greater extent than before – a true jewel in the crown of the Polish economy,” Donald Tusk summed up.

KGHM accounts for almost 50 per cent of EU copper production. The company is not only the largest copper producer in Europe, but also belongs to the elite group of the 10 largest copper producers in the world. The aim of the new investments is to maintain the current level of extraction over the coming decades.