POLIS H FIN A NCIA L SUPER V ISIO N AU T HO R ITY
Consolidated report on payments
to governments SPS 2022
(in accordance with § 61 of the Decree regarding current and periodic information)
for issuers of securities involved in production, construction, trade or services activities
for 1 financial year 2022 comprising the period from 1 January 2022 do 31 December 2022
publication date: 2023-03-22
KGHM Polska Miedź Spółka Akcyjna
(name of the issuer)
KGHM Polska Miedź S.A.
(name of the issuer in brief)
59 – 301
(postal code)
M. Skłodowskiej – Curie
(street)
(+48) 76 7478 200
(telephone)
ir@kghm.com
(e-mail)
6920000013
(NIP)
Mining
(issuer branch title per the Warsaw Stock Exchange)
LUBIN
(city)
48
(number)
(+48) 76 7478 500
(fax)
www.kghm.com
(www)
390021764
(REGON)
Issuer involved in mining industry
Polish Financial Supervision Authority
This report is a direct translation from the original Polish version.
In the event of differences resulting from the translation, reference should be made to the official Polish
version.
in PLN millions, unless otherwise stated
KGHM Polska Miedź S.A. Group
Consolidated report on payments to governments in 2022
Consolidated report on payments to governments
1. Basis of preparation and scope of the Report on payments to governments
Legal basis
This Report on payments to governments (the Report) was prepared under the requirements of the amended Accounting
Act. Amendments to this Act were introduced due to the implementation into the Polish law of the Directive 2013/34/EU of
the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related
reports of certain types of undertakings.
Reporting unit
This Report contains information on payments to governments made by the Parent Entity (KGHM Polska Miedź S.A.), the
subsidiary KGHM INTERNATIONAL LTD. and its subsidiaries. This Report does not include payments to governments made
by joint ventures accounted for using the equity method in KGHM Polska Miedź S.A.’s consolidated financial statements.
Activities under the reporting requirements
Payments to governments made by the KGHM Polska Miedź S.A. Group which were disclosed in this Report concern activities
involving the exploration and prospecting, discovery, development and extraction of deposits of metals, rock, sand and clay.
In cases where a given payment concerns both an activity subject to reporting requirements as well as other activities (e.g.
metallurgical, processing and refining activities), the amount disclosed in this Report is not broken down but is presented in
full.
Government
“Government” means any government administration authority or local self-government authority, as well as entities
supervised or controlled by these authorities, and in the case of other countries of the European Economic Area or countries
outside of the European Economic Area – national, regional or local authorities of a given country as well as entities supervised
or controlled by these authorities.
Project
“A project” means the operational activities that are governed by a single contract, in particular rentals, leases, licences or
concessions which form the basis for payment obligations towards a government authority of a given country. If multiple
such agreements are substantially interconnected, then the operational activities under them shall be considered to be a
single project.
Types of payments
Payments made to governments, whether in money or in kind (calculated in monetary terms using the most appropriate
valuation methods based on historical cost or market value) in respect of activities subject to reporting requirements were
classified into the following categories:
a) Taxes
In this Report, taxes levied on the income, production or profits of companies of the KGHM Polska Miedź S.A. Group (mainly
the minerals extraction tax), excluding the tax levied on consumption such as the value added tax, the personal income tax
or the sales tax.
b) Dividends
Dividends required to be disclosed in the Report are payments other than dividends paid to governments being owners of
ordinary shares of KGHM Polska Miedź S.A., unless these are dividends paid instead of production entitlements or royalties.
In 2022, there were no such payments to governments.
c) Concession payments, discovery and production bonuses
The following items were classified into this category of payments to governments: payments for mining usufruct rights and
mining royalties.
d) Other payments and considerations for concessions
Payments disclosed in this Report are payments for:
- perpetual usufruct of land,
- exclusion of agricultural land for non-agricultural purposes,
- atmospheric emissions,
- discharging of mine and process water,
- waste and rainwater discharge,
- technical supervision and inspection of machines.
e) Payments for infrastructure improvements – did not occur in 2022.
f) Production entitlements and royalties – did not occur in 2022.
in PLN millions, unless otherwise stated
KGHM Polska Miedź S.A. Group
Consolidated report on payments to governments in 2022
Materiality level
In this Report, amounts paid to governments were disclosed if a single payment or a sum of interconnected payments made
by the entities of the KGHM Polska Miedź S.A. Group amounted to at least the equivalent of PLN 424 700 in 2022.
Exchange rates applied
In this Report, in order to translate the financial data of foreign operations, the exchange rates being the arithmetical average
of the current average exchange rates announced by the NBP on the last day of each month in 2022 were applied.
2. Payments made to governments in 2022 (in PLN millions)
Payments to governments
Taxes
Concession
payments,
discovery and
production
bonuses
Other payments
and
considerations
for concessions
Payments to
governments -
total
Poland
3 202
199
43
3 444
Canada
-
25
-
25
The United States of America
101
8
-
109
Chile
1
-
-
1
Total
3 304
232
43
3 579
POLAND
Payments to governments – breakdown by level of
government
Taxes
Concession
payments,
discovery and
production
bonuses
Other payments
and
considerations
for concessions
Payments to
governments -
total
Government administration authorities:
3 052
91
36
3 179
central
-
91
-
91
Ministry of Environment
-
43
-
43
National Fund for Environmental Protection
and Water Management
-
48
-
48
local
3 052
-
36
3 088
Regional State Forests Directorate
-
-
26
26
Tax offices
3 052
-
-
3 052
Forest districts
-
-
10
10
Local government authorities:
150
108
7
265
Marshal’s Office
-
-
1
1
Local county offices
-
-
6
6
Towns and municipalities
150
108
-
258
Total
3 202
199
43
3 444
All of the payments made to Polish governments were at the corporate level.
CANADA
Taxes
Concession
payments,
discovery and
production
bonuses
Other payments
and
considerations
for concessions
Payments to
governments -
total
Payments to governments – breakdown by level of
government
National
-
21
-
21
Regional
-
4
-
4
Total
-
25
-
25
Payments – breakdown by projects
Corporate level
-
25
-
25
Total
-
25
-
25
in PLN millions, unless otherwise stated
KGHM Polska Miedź S.A. Group
Consolidated report on payments to governments in 2022
THE UNITED STATES OF AMERICA
Taxes
Concession
payments,
discovery and
production
bonuses
Other payments
and
considerations
for concessions
Payments to
governments -
total
Payments to governments – breakdown by level of
government
National
101
8
-
109
Total
101
8
-
109
Payments – breakdown by projects
Robinson mine
100
8
-
108
Carlota mine
1
-
-
1
Total
101
8
-
109
CHILE
Taxes
Concession
payments,
discovery and
production
bonuses
Other payments
and
considerations
for concessions
Payments to
governments -
total
Payments to governments – breakdown by level of
government
National
1
-
-
1
Total
1
-
-
1
Payments – breakdown by projects
Corporate level
1
-
-
1
Total
1
-
-
1
KGHM Polska Miedź S.A. Group
Consolidated report on payments to governments in 2022
SIGNATURES OF ALL MEMBERS OF THE MANAGEMENT BOARD
This report was authorised for issue on 21 March 2023.
President
of the Management Board
Tomasz Zdzikot
Vice President
of the Management Board
Mateusz Wodejko
Vice President
of the Management Board
Marek Pietrzak
Vice President
of the Management Board
Mirosław Kidoń
Vice President
of the Management Board
Marek Świder