Tauron Polska Energia SA and its subsidiary – Południowy Koncern Energetyczny SA signed an agreement with KGHM Polska Miedź SA on establishing a company ‘New Blachownia Power Plant’ on March 23rd, 2010. the new company will construct a 910 MW coal-fired power plant on site of PKE Blachownia Power Plant in Kędzierzyn-Koźle. The venture will be financed from own financial resources of the partners as well as from the credit contracted by the new company.

The agreement is the result of the Letter of Intent signed between KGHM Polska Miedź SA and Tauron Polska Energia SA in April 2009. the agreement is the basis for the partners to draw up the necessary documentation in order to establish the Special Purpose Vehicle. The indespensible company agreements and the partners agreements should be drawn up this year alongside execution of all necessary procedures with external institutions. A joint working team cooperated in 2009 and early 2010 so as to define the cooperation bases and the venture execution model. Repowering is a priority for Tauron Group stipulated in the corporate strategy till 2012 with the perspective till 2020. the document stipulates the construction of new generation units at the level of 3000 MW to 2012. Diversification of income sources and entering the power industry are the priorities of KGHM Polska Miedź for the period 2009-2018.

(PaG)