1 KGHM Polska Miedź S.A. The biggest producer of copper and silver in Europe Copper t Silver 1100 t Gold 386 kg

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3 CBPM CUPRUM The general designer and researcher of LGOM copper basin

4 TECHNOLOGICAL CHAIN Mining Processing Waste disposal

SALES VOLUME Total4,928 mln zł Copper3,983 mln zł Silver772 mln zł

6 Owner structure of KGHM Polska Miedź S.A. (as at 12 January 2001)

Copper Sales - Markets

8 Industrial resources  mln tonnes of ore  depth up to 1250 m  average content Cu 2,12 %  average content Ag 56 g/t  Anticipated exploitation period years with current production volumes Copper Resources

9 Lena no 141 ha7 mln t Lena no 288 ha15 mln t Konrad no 1129 ha18 mln t Konrad no 212 ha1,2 mln t Konrad no 3145 ha16,6 mln t Gilów600 ha92,0 mln t Żelazny Most1260 ha525 mln t Tailings ponds

Localisation of tailings ponds

11 „Żelazny Most” tailings pond

12 TAILINGS PONDS ENVIRONMENTAL PROBLEMS  Huge scale of the pond  Dusting  Contamination of surface and underground water with salt and heavy metals in the local drainage basin  Increasing heavy metal contents in soil and plants surrounding the tailing plant  Contamination of Odra river by technological water

13 LICYMIN LIFE CYCLE ASSESSMENT OF MINING PROJECTS FOR WASTE MINIMISATION AND LONG TERM CONTROL OF REHABILITATED SITES KGHM PM S.A. CBPM CUPRUM G1RD-CT

14 Life cycle assessment of mining projects for waste minimisation and long term control of rehabilitated sites The main objective of this project is to develop and validate a metodology to minimise the „full life-cycle” impact of metalliferous mining projects, adopting an integrated approach to production and process design, including waste disposal, remediation and the costs involved GENERAL TARGET

15 POLISH PARTICIPANTS  KGHM Polish Copper S.A. /CBPM CUPRUM  Polish Academy of Science, Kraków

16 Frame Scope of Work  Updating of the existing database  Conceptual LCA modelling of the production and processing and financial modelling of these options  Mining and processing alternatives will aim at developing methodologies to improve recovery, minimise waste production and ensure safe, low risk disposal  Environmental monitoring and long term control of the impacts of the mining activities

START MARCH 2000

18 CLOTADAM Chemically Stabilised Layers KGHM PM S.A. CBPM CUPRUM G1RD-CT

19 Chemically Stabilised Layers Through forming chemically stabilised layers with properly selected lifi- time to help in faster, more effective and more environment- friendly closing tailings pond GENERAL TARGET

20 PARTICIPANTS  KGHM Polish Copper S.A. /CBPM CUPRUM o Environmental Protection Dpt. o Environemntal Protection Management Dpt. o Tailing Ponds Dpt.  Polish Academy of Science, Kraków

21 Frame Scope of Work  Updating of the existing database  Preliminary selection of chemicals and additives  Elaboration of agents and methods for their application, including local additives  Laboratory research on application conditions and effectiveness of selected agents  Pilot tests  Technical-economic assesment  Elaboration technology for industrial application

START SEPTEMBER 2001

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