⚠ The Energy Bill Under a SmelterModerate threat

KGHM Polska Miedź (KGH) — threat to the moat

Three metallurgical plants drawing Polish power, against a self-generation target of 220 megawatts.

Smelting copper is one of the more electricity-intensive things an industrial company can do, and KGHM does it in a country whose power has been among the most carbon-intensive and expensive in Europe.

Power under three metallurgical plants+11%energy cost,H1 2026103m złthe increase220 MWrenewable target+50%the requiredincreaseOwn generation: gas engines, CCGT, recovered smelter steam, photovoltaic and wind
Smelting copper is among the most electricity-intensive things an industrial company can do, in a country where power is dear.

The cost shows up directly: energy costs rose 103 million złoty in the first half of 2026, up 11%1, against a total increase in expenses by nature excluding purchased materials and the mining tax of 758 million2. It shows up indirectly in carbon: the company holds emissions allowances as prepaid assets3, which is the balance-sheet trace of an obligation that grows as European carbon policy tightens.

KGHM's answer is to generate more of its own. Its own generation sources comprise gas-fired combined-cycle units, natural-gas engines, steam recovered from the boilers at the Glogow smelter, and photovoltaic and wind farms4, and the strategy targets an increase of at least 50%, to at least 220 megawatts of installed capacity5.

That is a sensible programme and a small one against the draw of three metallurgical plants. It also requires capital in a plan that already commits more than 32 billion złoty over five years6.

The measure is energy cost per tonne of electrolytic copper. KGHM does not publish it, but both components are disclosed, and the ratio is the cleanest read on whether the self-generation programme is outrunning the price of Polish power.

References
  1. ReportedThe cost shows up directly: energy costs rose 103 million złoty in the first half of 2026, up 11%, against a total increase in expenses by nature excluding purchased materials and the mining tax of 758 million.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, financial results (revenue of 24 711m złoty up 40,8%, profit for the period of 5 579m against 580m, adjusted EBITDA of 9 198m up 89,1%, capital expenditure of 1 663m, net debt down 13,5% to 4 691m, equity of 39 814m, available financing of 16 978m, and the 1 979m złoty increase in the minerals extraction tax on higher copper and silver prices) — H1 2026 · publ. August 2026 · source ↗
  2. ReportedThe cost shows up directly: energy costs rose 103 million złoty in the first half of 2026, up 11%, against a total increase in expenses by nature excluding purchased materials and the mining tax of 758 million.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, financial results (revenue of 24 711m złoty up 40,8%, profit for the period of 5 579m against 580m, adjusted EBITDA of 9 198m up 89,1%, capital expenditure of 1 663m, net debt down 13,5% to 4 691m, equity of 39 814m, available financing of 16 978m, and the 1 979m złoty increase in the minerals extraction tax on higher copper and silver prices) — H1 2026 · publ. August 2026 · source ↗
  3. ReportedIt shows up indirectly in carbon: the company holds emissions allowances as prepaid assets, which is the balance-sheet trace of an obligation that grows as European carbon policy tightens.
    KGHM Polska Miedz S.A. Group consolidated financial statements for 2025 (group revenue of 36 366m złoty with the parent at 30 964m and KGHM INTERNATIONAL at 3 439m; parent copper revenue of 22 378m and silver revenue of 6 133m; minerals extraction tax of 4 693m against 3 865m in 2024 and 3 496m in 2023; employee benefits of 6 303m; purchased metal-bearing materials of 8 335m; parent net profit of 1 946m against a group profit of 3 688m; total assets of 58 240m, equity of 32 898m and involvement in the Sierra Gorda joint venture of 10 250m including 8 436m of loans) — FY2023-FY2025 · publ. 10 March 2026 · source ↗
  4. ReportedIts own generation sources comprise gas-fired combined-cycle units, natural-gas engines, steam recovered from the boilers at the Glogow smelter, and photovoltaic and wind farms, and the strategy targets an increase of at least 50%, to at...
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, the Strategy of the KGHM Group 2055+ approved on 3 July 2026 and its targets (payable copper production above 730 thousand tonnes a year of which about 590 thousand from Polish assets including 180 thousand from scrap, adjusted EBITDA averaging 12 billion złoty at a 25,6% margin, capital expenditure above 32 billion złoty across 2026-2030, at least 220 MW of installed renewable capacity, the Sierra Gorda fourth grinding line at 725 million dollars raising output about 20% while shortening the life of mine by three years, the Deep Glogow Deposit Access Program, and shareholders including the State Treasury at 31,79%) — 2026-2030 and beyond · publ. August 2026 · source ↗
  5. ReportedIts own generation sources comprise gas-fired combined-cycle units, natural-gas engines, steam recovered from the boilers at the Glogow smelter, and photovoltaic and wind farms, and the strategy targets an increase of at least 50%, to at...
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, the Strategy of the KGHM Group 2055+ approved on 3 July 2026 and its targets (payable copper production above 730 thousand tonnes a year of which about 590 thousand from Polish assets including 180 thousand from scrap, adjusted EBITDA averaging 12 billion złoty at a 25,6% margin, capital expenditure above 32 billion złoty across 2026-2030, at least 220 MW of installed renewable capacity, the Sierra Gorda fourth grinding line at 725 million dollars raising output about 20% while shortening the life of mine by three years, the Deep Glogow Deposit Access Program, and shareholders including the State Treasury at 31,79%) — 2026-2030 and beyond · publ. August 2026 · source ↗
  6. ReportedIt also requires capital in a plan that already commits more than 32 billion złoty over five years.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, the Strategy of the KGHM Group 2055+ approved on 3 July 2026 and its targets (payable copper production above 730 thousand tonnes a year of which about 590 thousand from Polish assets including 180 thousand from scrap, adjusted EBITDA averaging 12 billion złoty at a 25,6% margin, capital expenditure above 32 billion złoty across 2026-2030, at least 220 MW of installed renewable capacity, the Sierra Gorda fourth grinding line at 725 million dollars raising output about 20% while shortening the life of mine by three years, the Deep Glogow Deposit Access Program, and shareholders including the State Treasury at 31,79%) — 2026-2030 and beyond · publ. August 2026 · source ↗
Sources
Generated September 24, 2026