KGHM and Fosfory on a joint project to seek natural resources

| Production & Resources |

On Friday 30th, 2013 KGHM Polska Miedź S.A. and Gdańskie Zakłady Nawozów Fosforowych “Fosfory” signed a letter of intent confirming willingness to cooperate. Basing on this document, both Parties are to engage in talks about the rules of cooperation during the implementation of projects concerning the search of and research into deposits of chemical resources in Poland and abroad, as well as recycling.

For Fosfory, a company located in Gdańsk and belonging to Grupa Azoty Puławy, the main objective is to obtain a source of polihalite, the sulfate of potassium, calcium and magnesium. The mineral is an excellent source of potassium for the manufacturing of complex fertilizers.

Seeking deposits and ensuring a safe supply of resources is of particular, strategic interest for all companies in Grupa Azoty – said Grupa Azoty CEO Paweł Jarczewski upon the signing of the agreement. He mentioned other possible use of the resource – polihalite might bring a change of complex fertilizers manufacturing technology used by Fosfory in Gdańsk and Police. Potassium in this form, as an ingredient of complex fertilizers, is absorbed by plants in a better way, makes fertilizing more effective and is more environmentally-friendly than that in the chlorine form – Mr Jarczewski added.

The above activities confirm the strategy of Grupa Azoty, a strategy which focuses on diversification of resources and gaining access to own resource deposits. The Parties are to initiate talks shortly and define the manner and rules of cooperation during this enterprise.