Can you highlight KGHM International's recent activities in Canada?

KGHM International (KGHM) continues to make significant investments in Ontario, focusing heavily on advancing the Victoria project in Sudbury. We have now commissioned our wastewater treatment plant, hoist house, and substation and have advanced down past the 600 m station in the shaft. We have also mined copper, nickel, platinum, palladium, cobalt and silver from the McCreedy West deposit, culminating in a sales purchase agreement with Magna Mining. Simultaneously, we have funded exploration opportunities both in the Sudbury Basin and in northern Ontario where we hold greenfield properties with potential gold-producing sites. We have also engaged with Azimut Exploration in an option agreement for exploration of non-ferrous and precious metals in the very prosperous James Bay region in northern Québec, and we have already made the first finding.

In addition to advancing the Victoria project’s shaft sinking toward underground drifts, we are planning an extended underground drilling campaign over the next several years to expand and convert resources.

KGHM is the second largest producer of silver and eighth largest producer of copper globally. While some of the Sudbury assets were deemed non-core for KGHM, they are excellent assets positioned well in the Basin to be the focus for another company with a different strategy. Where is McCreedy West ore processed and refined?

The ore is mined and delivered for milling and smelting to facilities operated by Vale. We also collaborate with Glencore for nickel mining, ensuring that all processing remains within Ontario. From there, the supply chain is managed by companies like Vale and Glencore or other distributors. What makes the Victoria project significant for KGHM?

The Victoria project in Sudbury is particularly important for KGHM due to the unique mining ecosystem the region offers. Sudbury fosters strong synergies between companies such as Vale, Glencore and KGHM, which enables collaboration in production, shared infrastructure and broader industry benefits. These partnerships significantly enhance the sustainability and efficiency of our operations, making Sudbury an ideal location for advancing the Victoria mine.

However, bringing the Victoria mine into production has not been without its challenges. The permitting process in Ontario has proven to be complex in the past, and the substantial costs of construction have added further difficulty. The support of our primary EPC contractor, DMC Mining Services, has been invaluable in navigating these and other obstacles.

To address environmental and energy-related challenges, we have implemented critical infrastructure, including a fully commissioned wastewater treatment plant and an electrical substation connected to the transmission line for site-wide power distribution. What are the plans and key milestones for the Victoria mine?

The plan for the Victoria mine focuses on advancing through the exploration phase and moving towards commercial production. With key environmental and energy mitigations in place, alongside strong community partnerships, the project is well-positioned to meet its long-term objectives. Over the next few years, a major priority is obtaining approvals and progressing with shaft sinking operations, with a target of reaching around 750 m by the end of 2024. This will enable advanced exploration drilling as part of a multi-year development plan extending into 2025 and beyond.

Sustainability and efficiency are central to our approach, with the integration of advanced technologies such as BEVs to improve ventilation and ore handling while minimizing the surface footprint. How do you see KGHM and Sudbury players remaining competitive amid global challenges?

While nickel sulfides have been facing challenges, the demand for copper remains strong. Mining camps in Sudbury are continually seeking efficient methods of metal extraction to maintain competitiveness on the global stage. Domestic production must focus on innovation and sustainability to counter the competition posed by low-cost nickel producers such as those in Indonesia. What are KGHM’s priorities?

KGHM will continue to prioritize a safety culture focused on growth and expansion. The Victoria project will remain a top priority as it advances towards production. We are committed to exploration efforts, both in-house and in collaboration with our partners. Sustainability is also a central focus for our operations. Our business is our people, and with a team of dedicated and passionate professionals, we are working to secure a bright future for KGHM in Canada.