KGHM Polska Miedź S.A.

Environmental & Social Information • Mar 22, 2023

POLIS H FIN A NCIA L SUPER V ISIO N AU T HO R ITY Consolidated report on payments to governments SPS 2022 (in accordance with § 61 of the Decree regarding current and periodic information) for issuers of securities involved in production, construction, trade or services activities for 1 financial year 2022 comprising the period from 1 January 2022 do 31 December 2022 publication date: 2023-03-22 KGHM Polska Miedź Spółka Akcyjna (name of the issuer) KGHM Polska Miedź S.A. (name of the issuer in brief) 59 – 301 (postal code) M. Skłodowskiej – Curie (street) (+48) 76 7478 200 (telephone) ir@kghm.com (e-mail) 6920000013 (NIP) Mining (issuer branch title per the Warsaw Stock Exchange) LUBIN (city) 48 (number) (+48) 76 7478 500 (fax) www.kghm.com (www) 390021764 (REGON) Issuer involved in mining industry Polish Financial Supervision Authority This report is a direct translation from the original Polish version. In the event of differences resulting from the translation, reference should be made to the official Polish version. in PLN millions, unless otherwise stated KGHM Polska Miedź S.A. Group Consolidated report on payments to governments in 2022 2 Consolidated report on payments to governments 1. Basis of preparation and scope of the Report on payments to governments Legal basis This Report on payments to governments (the Report) was prepared under the requirements of the amended Accounting Act. Amendments to this Act were introduced due to the implementation into the Polish law of the Directive 2013/34/EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. Reporting unit This Report contains information on payments to governments made by the Parent Entity (KGHM Polska Miedź S.A.), the subsidiary KGHM INTERNATIONAL LTD. and its subsidiaries. This Report does not include payments to governments made by joint ventures accounted for using the equity method in KGHM Polska Miedź S.A.’s consolidated financial statements. Activities under the reporting requirements Payments to governments made by the KGHM Polska Miedź S.A. Group which were disclosed in this Report concern activities involving the exploration and prospecting, discovery, development and extraction of deposits of metals, rock, sand and clay. In cases where a given payment concerns both an activity subject to reporting requirements as well as other activities (e.g. metallurgical, processing and refining activities), the amount disclosed in this Report is not broken down but is presented in full. Government “Government” means any government administration authority or local self-government authority, as well as entities supervised or controlled by these authorities, and in the case of other countries of the European Economic Area or countries outside of the European Economic Area – national, regional or local authorities of a given country as well as entities supervised or controlled by these authorities. Project “A project” means the operational activities that are governed by a single contract, in particular rentals, leases, licences or concessions which form the basis for payment obligations towards a government authority of a given country. If multiple such agreements are substantially interconnected, then the operational activities under them shall be considered to be a single project. Types of payments Payments made to governments, whether in money or in kind (calculated in monetary terms using the most appropriate valuation methods based on historical cost or market value) in respect of activities subject to reporting requirements were classified into the following categories: a) Taxes In this Report, taxes levied on the income, production or profits of companies of the KGHM Polska Miedź S.A. Group (mainly the minerals extraction tax), excluding the tax levied on consumption such as the value added tax, the personal income tax or the sales tax. b) Dividends Dividends required to be disclosed in the Report are payments other than dividends paid to governments being owners of ordinary shares of KGHM Polska Miedź S.A., unless these are dividends paid instead of production entitlements or royalties. In 2022, there were no such payments to governments. c) Concession payments, discovery and production bonuses The following items were classified into this category of payments to governments: payments for mining usufruct rights and mining royalties. d) Other payments and considerations for concessions Payments disclosed in this Report are payments for: - perpetual usufruct of land, - exclusion of agricultural land for non-agricultural purposes, - atmospheric emissions, - discharging of mine and process water, - waste and rainwater discharge, - technical supervision and inspection of machines. e) Payments for infrastructure improvements – did not occur in 2022. f) Production entitlements and royalties – did not occur in 2022. in PLN millions, unless otherwise stated KGHM Polska Miedź S.A. Group Consolidated report on payments to governments in 2022 3 Materiality level In this Report, amounts paid to governments were disclosed if a single payment or a sum of interconnected payments made by the entities of the KGHM Polska Miedź S.A. Group amounted to at least the equivalent of PLN 424 700 in 2022. Exchange rates applied In this Report, in order to translate the financial data of foreign operations, the exchange rates being the arithmetical average of the current average exchange rates announced by the NBP on the last day of each month in 2022 were applied. 2. Payments made to governments in 2022 (in PLN millions) Payments to governments Taxes Concession payments, discovery and production bonuses Other payments and considerations for concessions Payments to governments - total Poland 3 202 199 43 3 444 Canada - 25 - 25 The United States of America 101 8 - 109 Chile 1 - - 1 Total 3 304 232 43 3 579 POLAND Payments to governments – breakdown by level of government Taxes Concession payments, discovery and production bonuses Other payments and considerations for concessions Payments to governments - total Government administration authorities: 3 052 91 36 3 179 central - 91 - 91 Ministry of Environment - 43 - 43 National Fund for Environmental Protection and Water Management - 48 - 48 local 3 052 - 36 3 088 Regional State Forests Directorate - - 26 26 Tax offices 3 052 - - 3 052 Forest districts - - 10 10 Local government authorities: 150 108 7 265 Marshal’s Office - - 1 1 Local county offices - - 6 6 Towns and municipalities 150 108 - 258 Total 3 202 199 43 3 444 All of the payments made to Polish governments were at the corporate level. CANADA Taxes Concession payments, discovery and production bonuses Other payments and considerations for concessions Payments to governments - total Payments to governments – breakdown by level of government National - 21 - 21 Regional - 4 - 4 Total - 25 - 25 Payments – breakdown by projects Corporate level - 25 - 25 Total - 25 - 25 in PLN millions, unless otherwise stated KGHM Polska Miedź S.A. Group Consolidated report on payments to governments in 2022 4 THE UNITED STATES OF AMERICA Taxes Concession payments, discovery and production bonuses Other payments and considerations for concessions Payments to governments - total Payments to governments – breakdown by level of government National 101 8 - 109 Total 101 8 - 109 Payments – breakdown by projects Robinson mine 100 8 - 108 Carlota mine 1 - - 1 Total 101 8 - 109 CHILE Taxes Concession payments, discovery and production bonuses Other payments and considerations for concessions Payments to governments - total Payments to governments – breakdown by level of government National 1 - - 1 Total 1 - - 1 Payments – breakdown by projects Corporate level 1 - - 1 Total 1 - - 1 KGHM Polska Miedź S.A. Group Consolidated report on payments to governments in 2022 5 SIGNATURES OF ALL MEMBERS OF THE MANAGEMENT BOARD This report was authorised for issue on 21 March 2023. President of the Management Board Tomasz Zdzikot Vice President of the Management Board Mateusz Wodejko Vice President of the Management Board Marek Pietrzak Vice President of the Management Board Mirosław Kidoń Vice President of the Management Board Marek Świder