KGHM Polska Miedź S.A. is based on stability, responsibility and a high ability to adapt. We are a company with deep traditions, rich in experience and numerous achievements. KGHM is the 9th-largest producer of copper an......KGHM Polska Miedź S.A. is based on stability, responsibility and a high ability to adapt. We are a company with deep traditions, rich in experience and numerous achievements. KGHM is the 9th-largest producer of copper and the 3rd-largest producer of silver in the world. The electrolytic copper of KGHM is registered by the London Metal Exchange (LME) as „Grade A", while its silver – in the form of bars – are registered under the KGHM HG brand, and hold a „Good Delivery" certificate, issued by the London Bullion Market Association (in 1995) and by the Dubai Multi Commodities Centre (in 2006). Other products of KGHM include gold, lead, sulphuric acid and rock salt. KGHM Polska Miedź S.A. cares about the natural environment. Enormous financial outlays and model technology and methods guarantee that the most stringent EU requirements and standards as respects environmental protection are met. KGHM is currently a Leader of Polish Ecology and an Environmentally Friendly Company, and has been honored as an Ecological Laureate of the Polish Chamber of Ecology. KGHM Polska Miedź S.A. is a modern and innovative company, being not only an attractive employer but also a people-friendly environment who together are building the value and the image of the Company. The Company treats the safety of its employees as a priority issue – KGHM was named as a Gold Card Employment Leader. The Company employs 18 thousand workers, while the Group has over 28 thousand people. KGHM Polska Miedź S.A. owns shares in 21 entities, operating in various production and service-related areas. The value of the Company is significantly impacted by its telecom assets. KGHM is one of the largest Polish exporters, the largest employer in Lower Silesia, and a significant part of the WIG20 index – winner of a prestigious statuette for achievements in 2005. The Company was awarded the Bull and Bear prize by the Market Paper „Parkiet” in the category of best investment in a WIG20 company and the Pearl of the Polish Market prize in the raw materials and energy sector. The Company generates enormous profits, and holds a strategic interest for the Polish economy. The year 2007 saw record results in the production of electrolytic copper – 532 974 t – and of metallic silver – 1 215 t, and above all a record profit – nearly PLN 3.8 billion and a future promising steady growth and an increase in the value of the Company. The Management Board of KGHM Polska Miedź S.A. announces that on 23 February 2009 the Supervisory Board of KGHM Polska Miedź S.A. approved the „Strategy of KGHM Polska Miedź S.A. for the years 2009 – 2018” (hereinafter the Strategy). The vision of KGHM Polska Miedź S.A. is to become a major, global copper producer by increasing copper production to approx. 700 thousand tonnes. The Strategy of KGHM Polska Miedź S.A. is based on five main areas: 1. Improving productivity – aimed at halting increases in the unit cost of production. Key actions in this area assume: a) investments in new technology, including: - the mechanical mining of ore, enabling the effective exploitation of the deposit up to two meters in thickness, - concentrate smelting in the Głogów I smelter – construction of a flash furnace, - automatisation of the ore enrichment process, b) modernisation of existing infrastructure, including: - replacing mining machinery – maintaining the machinery replacement ratio at 17%, - replacing machinery in the Ore Enrichment Plants (new floatation machinery), - intensifying the electrorefining process – modernisation of the Głogów II smelter, c) optimalisation of production procedures and organisation, including among others: - centralisation of purchasing, - developing and implementing an IT ore mining management system, - intensifying underground mine development work. 2. Developing the resource base – aimed at increasing the production of copper in concentrate to approx. 700 thousand tonnes annually. KGHM Polska Miedź S.A. will undertake a variety of initiatives guaranteeing the possibility of long-term growth by increasing the resource base, in particular: a) developing the deep deposit mining system, including: - further work on developing and accessing the Głogów Głęboki–Przemysłowy deposit, - developing the system for mining ore at depths below 1200 meters, b) investments in foreign mining assets, c) searching for new local deposits by: - further exploration of the possibilities of mining the region of Radwanice–Gaworzyce, - exploring and documenting the region of Weisswasser (Germany), - exploratory work in regions adjacent to the deposits of KGHM, d) intensifying the processing of scrap – optimalisation of the electrolytic copper production process by increasing the volume of smelted scrap. 3. Diversifying sources of revenues and gaining gradual independence from energy prices. The Company intends over the long term for approx. 30% of its revenues to be unrelated to its core business. Towards this end the Strategy assumes: a) continued investment in th