Polish Contribution to the EU Raw Materials Initiative. Speaking: Marek Walczuk Senior Sales Specialist

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Brussels, Belgium 6th November 2017 EU Row Materials Week Polish Contribution to the EU Raw Materials Initiative Speaking: Marek Walczuk Senior Sales Specialist

ABOUT US Company: KGHM ZANAM S.A. (founded in 1966). a merger of DM ZANAM and ZM LEGMET in 2003 Owner: 100% subsidary of KGHM Polska Miedź S.A. Employment: ~ 2,600 people Sales revenue:~ PLN 1000 mln in 2016 (~ USD 350 mln) Activities: Manufacturing underground selfpropeller mining machines and machinery for hard rock mining. Repair and maintain services, mining and blasting services, transport services, investment services. 1

ISO STANDARDS Integrated Management System: Quality Health and Safety Environmental Protection IT Security. 2

EXPERIENCE AND CAPABILITIES Excellent technological capabilities Experienced constructores and designers Qualified labour staff Constant development 3

INTERNATIONAL ACTIVITIES 4

PRODUCTS 5

SELF-PROPELLED MINING MACHINES LOADERS Types: LKP-0301 LKP-0301A LKP-0403C LKP-0403D LK-1M LKP-0404M LKP-0405 LKP-0701 LKP-0805C LKP-0806A LKP-0900B LKP-0903 LKP-1601B LKP-1601M HAUL TRUCKS Types: CB4-20TB CB4-24TB CB4P-24K CB4PCK WKPL-28 DRILLING-BOLTING RIGS Types: KOT-170 SWK-1HS SWKN-1/1A SWKN-1/1A SWW-1/1H SWW-1HS RRW SWW-1HS RT1 SWWK-2L WIR-170 www.kghmzanam.com 6

SELF-PROPELLED MINING MACHINES BLAST TRUCKS Types: WS-170 WS-151 WS-171 WS-172 AUXILIARY TRUCKS Types: SPK-806A SWB2CD SWB2N/Z SWB-900B SWKS-1 SWKS-5 SWON SWOZN-1 SWPS-3 SWPS-4A SWPS-5 WSAD-405 TRANSPORT TRUCKS Types: SWT-3 SWT-3O SWT-3D SWT-3K SWT-3MW SWT-3S SWT-3S/A SWT-3T SWT ZANAM-14 ROBUST B www.kghmzanam.com 7

SERVICES PROVIDED 8

REPAIRS AND MANTENENCE OF ORE ENRICHMENT INSTALATIONS KGHM ZANAM S.A. provides mainteneace services for machinery and equipement instalations involved in the crusching, griding and flotation processes. www.kghmzanam.com 9

REPAIRS AND MAINTENANCE OF FURNACES AND METALURGICAL EQUIPMENT We provide comprehensive repair services, disassembling and assembling metallurgical furnaces and metallurgical equipment, along with related installations (Stationary and Rotary Anode Furnaces, Converter Furnaces, Shaft Furnaces, ovens, Rotary-Shuttle Furnaces). www.kghmzanam.com 10

INVESTMENT PROJECTS IN MODERNISATION OF COOPER SMELTER IN GLOGOW Our recent achievements include: performing periodic repair and modernisation of the Electric Furnace at the Głogów Copper Smelter, modernising the Sulphuric Acid Plant within the implemented Pyrometallurgy Modernisation Programme for KGHM Polska Miedź S.A. building slag pouring and casting installation with infrastructur for the Głogów Copper Smelter. www.kghmzanam.com 11

INVESTMENT PROJECTS IN FLOTATION INSTALATIONS Expertise and extensive experience result from the implementation of a number of investment projects: delivering, assembling, and installing flotation machines for KGHM Polska Miedź S.A., constructing a water plant installation in the KGHM Polska Miedź S.A.Ore Enrichment Plants, modernising a flotation tailings pump station in the KGHM Polska Miedź S.A.Ore Enrichment Plants, designing and constructing the Facility for Thickening and Segregation of Tailings at the Żelazny Most Tailings Disposal Facility. www.kghmzanam.com 12

New constructions and technical techincalsolutions soultions implemented impementedin mining machines machines 2016-2017 in 2016-2017

AREAS OF IMPROVEMENT Solutions for safer working conditions Solutions for friendlier working evironment Solutions for increased productivity 14

WORKERS ENGINERY 1. Operator's space. 2. Microclimate. 3. Air filtration. 1. Drive and brake systems. 2. Exhaust systems. 3. Firefighting and electrical installation. 15

Operator s working place - seat Safety seat belts and ergonomic seat base for comfortable work. Standard type. Pneumatic type. 16

Operator s working space - cabin More space in the cabin - more comfort for the operator. 17

Operator s working environment air filtration system For dusty and unpleasant working conditions underground. 18

New drive systems for higher inclinations Standard front drive only. Hydraulic engines in the rear hubs as additional drive by transferring torque to rear hubs 4x4 drive. 19

Greater turning angle for better manueverability Previous standard - 53ᵒ (angle). New standard - 58ᵒ (angle). 20

New axles with Posi-Stop system Break systems for increased safety.

Fixed fire supression system Fixed system activated manually and automiatically constant protection of the working unit and workers safety. 22

Exhaust systems with higher standards Stage IV new higher standard of emission of exhaust gases to be implemented in new mining machines. 23

Exhaust systems with higher standards DOC+SCR system applied in new 7 ton loader LKP-0702 DOC+SCR: Diesel Oxidation Catalyst and Selective Catalytic Reduction 24

Electric instalation Wires in insulation with selfextinguishing and non-toxic attribute.

NEW PROJECTS NEW MACHINES in 2017 Loader LKP-0702

New technical solutions Engine Stage IV emission standard The Cummins QSB 6,7 engine with higher standad of emission of combultion - Stage IV (wirth DOC+SCR: Diesel Oxidation Catalyst and Selective Catalytic Reduction). Axles Loader 700 series machine with the new Kessler D91 axles with Posi- Stop brake system. Variable displacement pumps Working and turning hydraulic systems with a new type of pumps. Brake system control Electric main brake and hill brake used simultaneously. Modular electrical installation No instalation bundles, stainless steel boxes.

NEW PROJECTS NEW MACHINES in 2017 Blasting utility vehicle WS-172

New technical solutions - cabin New construction with lateral protection, compliant with the mining standard PN-G-59001 (Self-propelled mining machines - Protective structures against rock debris).

New technical solutions battery drive Power Supply for Modular Pump Equipment (MUP) - location of the battery pack and control apparatus on the machine. Control unit Battery box

New technical solutions parameters display Vizualization of working paramenters of the battery powered explosive emulsion discharge unit. Operator s cabin Battery unit working parameters display.

PRIZES AND AWARDS Numerous awards from the Organisation of Copper Masters Modernization 2016 Medal for the innovative product of the Katowice Mining Fair 2017 (for WS-172 Blasting utitlty vehicle) Diamonds of Forbes 2017 Pearls of the Polish Economy 32

Thank you for your attention! 33