EU puts KGHM’s $2.4B copper projects on fast track

The European Commission has granted strategic status to two copper projects worth a combined 9.5 billion zlotys ($2.44 billion) proposed by Polish state-controlled producer KGHM Polska Miedz under the EU’s Critical Raw Materials Act (CRMA).

The designation covers the Retków-Grodziszcze mining project and the conversion of KGHM’s Legnica smelter into a recycling facility, the company said Friday. Both investments could benefit from faster permitting, improved administrative coordination and preferential financing.

The decision comes as Brussels seeks to expand domestic production and processing of critical minerals while reducing Europe’s reliance on China and other non-EU suppliers. The CRMA targets recycling capacity sufficient to meet at least 25% of the bloc’s annual consumption of strategic raw materials.

Mining and recycling

KGHM plans to extract more than 100 million tonnes of ore from Retków-Grodziszcze by 2055, producing nearly 1.5 million tonnes of copper and more than 5,000 tonnes of silver.

At Legnica, the company aims to establish a recycling operation capable of producing about 135,000 tonnes of electrolytic copper and 250 tonnes of nickel annually.

The projects would strengthen two parts of Europe’s metals supply chain, combining new mineral extraction with the recovery of materials that can be returned to industrial use.

Despite the regulatory benefits, the designation does not guarantee substantial financial assistance for either investment.