Poland’s KGHM targets higher copper output in 2026 as tax cuts lift incentives

KGHM

Poland’s KGHM targets higher copper output in 2026 after Poland lowers its copper extraction tax. Poland’s KGHM targets higher copper output in 2026 despite planned maintenance shutdowns. Therefore, KGHM is positioning to capture stronger margins during a supportive fiscal window.

KGHM plans to produce 395,900 tonnes of copper concentrate from domestic operations in 2026. The company also targets 589,000 tonnes of electrolytic copper next year. Meanwhile, those targets imply modest growth of 0.9% and 3.9% respectively.

Tax reduction supports output and spending plans

Poland will cut the copper extraction tax rate from 1 January. The finance minister said the change will reduce tax receipts by 500mn zlotys in 2026. As a result, KGHM gains more flexibility to fund operations and reinvest in core assets.

KGHM also plans 4.1bn zlotys in 2026 capital expenditure at Polish sites. That figure rises from 3.8bn zlotys this year. Therefore, the company is pairing tax relief with higher infrastructure spending.

Maintenance risk and Chile exposure shape the 2026 mix

KGHM will run maintenance shutdowns at the Glogow II facility in the second half of 2026. The company will also shut the reverberatory furnace at its Legnica site. However, planned outages can pressure output timing and increase unit costs.

Poland’s KGHM targets higher copper output in 2026 even as its Sierra Gorda joint venture outlook softens. KGHM expects 51,000 tonnes of payable copper from Sierra Gorda next year. Meanwhile, molybdenum output is expected to fall to 952 tonnes due to lower-grade ore.

The Metalnomist Commentary

This plan reads like a disciplined response to a clear fiscal signal. However, execution will hinge on outage management and concentrate flows. If copper prices stay firm, KGHM’s capex push could compound the tax benefit.