Betting on the transition of energy and the AI wave, European copper industry giants accelerate the expansion of their global business footprint.

The European Union's largest copper producer, KGHM Polska Miedz SA, plans to expand its overseas business footprint as the global transition to cleaner technologies continues to drive demand for the red metal copper. In an interview, CEO of KGHM Polska, Remy Gius Paszkiewicz, stated that the company hopes to strengthen its position in Europe and Africa, while also closely monitoring acquisition targets in the Americas to achieve business growth. Potential acquisitions in Europe and Africa would help increase self-produced raw material inputs for its Polish smelters, while further expansion to more distant regions is expected to enhance the company's financial strength. Paszkiewicz said, "Everyone is aware that the demand for copper will rise due to the energy transition and investments in wind turbines and electric cars," adding, "This process is particularly evident in China, where demand for the metal continues to remain at very high levels." Since the beginning of last year, driven by artificial intelligence and the energy boom, copper prices have fluctuated near historic highs, and KGHM's stock price has surged by 180%. The nearly $18 billion company also benefits from its unique position as one of the very few companies simultaneously producing silver and copper, giving it an advantage in the market surge of these two metals by the end of 2025. CEO mentioned that the company recently signed a memorandum of understanding in Morocco on potential investments in the raw materials sector, with the goal of expanding closer to home regions to increase its annual production by around 100,000 tons. These deals would complement KGHM's existing annual mining production of about 390,000 tons in Poland, reduce logistics costs, and protect it from rising costs of processing externally sourced raw materials in smelters. He stated in Warsaw, "Plans in Morocco and several other locations are directly related to the need to ensure long-term, stable supply for our smelters," adding, "This stems from our policy of not wanting to over-exploit our country's resources." Poland has the EU's largest copper reserves, a metal crucial for electrical wiring. Since the 1960s, KGHM have been producing copper and silver locally, but now they have to dig deeper underground to maintain ideal production levels. In 2011, the company took a bold move to acquire Quadra FNX Mining Ltd. for $2.84 billion, expanding its operations to the US, Canada, and Chile, which remains Poland's largest overseas acquisition to date. Driven by rising copper and silver prices, KGHM's profits hit a record high While KGHM's overseas assets only recently became profitable, last year these assets contributed nearly half of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA), while accounting for only 20% of total production. The CEO believes that now might be the time for further development in the Americas for KGHM. The company is currently evaluating assets in Chile, Argentina, the US, and Canada, and narrowing down the list to the most promising targets. They hope to make a final decision in the coming months. "There's no point in waiting, as everyone is looking for new opportunities. And as a publicly listed and state-owned company, KGHM has a lower tolerance for risk," Paszkiewicz said. "Competition is undoubtedly huge, but we have a robust approachwe don't want to engage in projects with very high costs." At a time when this expansion move is underway, its Polish business faces high mining taxes and the challenge of having to mine at deep underground levels. The C1 cost (a core measure in the industry showing the cash cost from mining, processing, to delivering copper to the market) in the first quarter at Sierra Gorda open-pit mine in Chile was 47% lower than in Poland. However, the company may soon be boosted domestically. Lumina Metals Corp. in Canada has discovered rich copper deposits near KGHM's site and plans to establish its own mine in the area. This Polish producer views Lumina as an opportunity rather than a competitor. "There's no better place than our Glogow smelter to process their raw materials," Paszkiewicz said. "Furthermore, if Lumina's investment can in any way lead to a reduction in copper taxes, everyone will benefit."