KGHM is looking for potassium salt in Puck Bay

| Production & Resources |

KGHM has commenced an exploration project aiming at specifying the resources and the possible efficiency of exploration of potassium salt deposits in the vicinity of Puck, Władysławów and Krokowa at the Polish seaside. The new venture might bring a breakthrough in the acquisition of resources for fertilizer production.

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Grupa Azoty. The priority for 2014 is investment

| Prospects & Investment |

Grupa Azoty is intending to tighten the cooperation with KGHM Polska Miedź, the same company which has just signed a deal with “PUŁAWY”. The agreement concerns seeking and excavation of resources used in chemical manufacturing.

Another level of cooperation

The implementation of joint energy projects constitutes the next step in the process, following the previous deal. Namely, Grupa Azoty “PUŁAWY”, Gdańskie Zakłady Nawozów Fosforowych “Fosfory” and KGHM Polska Miedź had signed an agreement regarding the search for and mining of phosphorites. The cooperation of the companies is also to expand to such areas as the processing of phosphogypsum and searching for potassium salt deposits abroad.

Sustainable development

Additionally, Grupa Azoty is intending to continue the investment projects which have been initiated already and to launch new such initiatives, estimated to be worth over 800 million PLN! New investments concern modernizing installations for ammonia manufacturing and processing, for the production of liquid and granulated fertilizers, as well as the energy sector. The overriding objective of these projects is improving the efficiency and operational excellence of installations in all works forming Grupa Azoty.

Further investment in natural gas

Grupa Azoty is not planning to become involved in the search for natural gas, but it is interested in participating in projects which have already reached the excavation stage. The opening of LNG (liquefied natural gas) Terminal in Świnoujście will certainly have a major influence on the activity of Grupa Azoty in this respect, seeing that it will lead to te diversification of natural gas supply sources.

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KGHM and “PUŁAWY” will search for resources together

| Bez kategorii |

On Friday, January 10th, 2014 KGHM Polska Miedź, Grupa Azoty “PUŁAWY” and Gdańskie Zakłady Nawozów Fosforowych “Fosfory” signed an agreement concerning cooperation in the search for resources. The document outlines the rules of joint activity of the companies regarding the identification and excavation of potassium salts, raw phosphate materials, salt and non-ferrous metal deposits.

Creation of a special purpose company

The agreement stipulates the scope and schedule of further work on the joint project. One of the essential elements of the document is specifying the details of the investment contract, which will mark the real launch of the common project, and will lead to constituting a special purpose company, as well as the terms of purchasing raw materials and resources from this company. GZNF “Fosfory”, Grupa Azoty “PUŁAWY” and KGHM Polska Miedź are to apply for corporate consent and seek an antitrust approval from the Office of Competition and Consumer Protection, so as to establish a new entity without problems.

Market giants joining forces

The Friday agreement has made KGHM Polska Miedź the project leader. The capital share of our companies – Grupa Azoty Zakłady Azotowe “PUŁAWY” and GZNF “Fosfory” (owned by Grupa Azoty “PUŁAWY”) or other Grupa Azoty members in the special purpose company will constitute 50%.

The document from January 10th, 2014 is the next step in the cooperation between the parties, which had singed a Letter of Intent concerning cooperation in exploration projects in August 2013.

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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.

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