Polish firms PGE and KGHM launch gas cogeneration in Kraków and expand Chilean copper mine

Poland’s PGE Energia Ciepła and KGHM Polska Miedź announced multi-billion investments on Thursday, with PGE breaking ground on a 866 million złoty ($200 million) gas cogeneration system in Kraków and KGHM launching a $725 million expansion of its Sierra Gorda copper mine in Chile.

In Kraków, PGE Energia Ciepła began construction of a 100 MWe/100 MWt gas engine system at the Elektrociepłownia Kraków plant, with completion slated for 2028. The project, led by Polish firms Unibep and SBB Energy, will cover 20% of the city’s district heating demand and reduce coal use by 200,000 tons annually. PGE’s broader coal phase-out at the site carries a 2.9 billion złoty ($680 million) price tag. “The scale of our responsibility for supply security is significant,” PGE president Dariusz Lubera said, noting the plant currently provides 70% of Kraków’s district heating .

Meanwhile, KGHM and its Australian partner South32 inaugurated the expansion of the Sierra Gorda mine in Chile’s Atacama Desert, a joint venture in which KGHM holds 55%. The $725 million project adds a fourth grinding line, boosting ore processing capacity from 48 million to 60 million tons annually and increasing copper output by 20%. “Sierra Gorda is the jewel in KGHM’s crown,” CEO Remigiusz Paszkiewicz said, adding that foreign assets now contribute 50% of the group’s EBITDA. Chilean President José Antonio Kast and Polish Deputy Minister of State Assets Eliza Zeidler attended the groundbreaking .