KGHM Launches Cost Optimisation Plan to Boost Profitability

KGHM Polska Miedź has announced the initiation of a Cost Optimisation Plan aimed at increasing the company's investment capacity and long-term profitability. The plan, set to begin this week, focuses on improving the efficiency of core business processes and optimizing costs across various operations.

“As the Management Board, we are obliged to constantly look for opportunities to optimise both efficiency and costs,” said Andrzej Szydło, President of the Management Board of KGHM. “The current macroeconomic conditions, copper price levels, and ongoing discussions about potential changes to the copper tax formula create favorable conditions for intensifying investment activities. Our goal is to increase the long-term resource base of domestic assets, which are the future of KGHM.”

The company will prioritize increasing labor efficiency over further cost reductions, as previous measures have already addressed key cost concerns. The first phase of the review will target areas such as purchasing, technology, waste recovery, and water management, with additional sectors to be identified in the near future.