Poland may become the site of one of the largest mining investments in Europe. The Canadian company Lumina Metals is developing a project to build a copper and silver mine in the area of Nowa Sól. The company has been conducting geological works there for over a decade and has been preparing the documentation necessary to start mining. According to the company's representatives, the project has already entered the stage of designing the mine and obtaining key administrative decisions.

During the European Economic Congress in Katowice, the President of Lumina Metals, Jordan Pandoff, argued that Poland has an exceptional raw material potential on the scale of the entire European Union. He pointed primarily to the huge reserves of copper and silver, which, in his opinion, can play a strategic role in the coming decades.

Growing demand for copper and silver

Copper has become one of the most important raw materials for the global economy. It is essential for the production of electric cars, energy infrastructure, transmission networks, energy storage or technologies used in data centers and artificial intelligence. According to industry analyses, the world may face a serious deficit of this raw material in the coming years.

Jordan Pandoff pointed out that the energy transition will force the launch of many new mines in the world. In his opinion, Poland is in an advantageous position, as it has one of the largest European copper reserves, and in the case of silver, it is one of the world leaders in mining.

The head of the Canadian company also emphasized that the current market has entered a new phase of the commodity cycle. After years of economic downturn and investment cuts in 2015-2019, the situation began to change after the COVID-19 pandemic. Disruptions in global supply chains and growing demand for critical raw materials have led to an increase in metal prices and increased investor interest in the mining sector.

According to Pandoff, there is no shortage of capital on the market, but the lack of attractive mining projects remains a problem. That is why the project near Nowa Sól is to attract the attention of investors from all over the world.

The copper mine near Nowa Sól is getting closer and closer

The project implemented by Lumina Metals is one of the largest undeveloped copper-silver deposits in Europe. The company has been operating in Poland since 2011 and conducts exploration mainly in the south-western part of the country.

The key undertaking remains the Nowa Sól field, which, according to the company's data, contains over 10 million tons of copper and about 36 thousand tons of silver. In total, the three projects developed by the Canadian company — Nowa Sól, Mozów and Sulmierzyce — are to cover about 20 million tons of copper.

In 2025, the deposit in Nowa Sól received the C1 category, which means that the resources have been confirmed at a level that allows the procedure for applying for a mining concession to begin. The company declares that the construction of the mine could start within four to five years, although the entire administrative and design process remains very time-consuming.

Jordan Pandoff reminded that work on the project began as early as 2012. It was only after more than a decade of research and analysis that the investment entered the stage of preparing technical documentation and obtaining environmental and administrative permits.

KGHM is to play a key role

An important element of the project is to be cooperation with KGHM Polska Miedź. Lumina Metals assumes that the copper concentrate mined near Nowa Sól could go to the smelter in Głogów. According to the company's representatives, this is a huge logistical advantage and significantly reduces transport costs.

In recent days, the company has also announced the signing of a letter of intent with KGHM on potential cooperation regarding the supply of copper concentrate as well as technological and logistical issues.

Raw materials market experts point out that possible cooperation with KGHM could significantly increase Polish's raw material security and strengthen the position of the domestic metallurgical industry.

Copper tax is still a problem for the industry

However, the CEO of Lumina Metals does not hide the fact that investing in the Polish mining industry is associated with serious financial challenges. He identified the high fiscal burden imposed on the mining sector as the biggest barrier.

According to the company's calculations, the total taxation of mining activities, including income tax and tax on copper and silver mining, may reach up to about 70 percent. It is the tax introduced in 2012 that has been criticized by the industry for years as one of the factors limiting new investments.

The topic also comes back regularly in the debate on the European Union's raw material security. Brussels is increasingly emphasizing the need to increase its own extraction of critical raw materials and become independent of supplies from China or South America.

A new mine can change the region

The planned investment arouses great interest in the Lubuskie Voivodeship. According to local estimates, the development of mines and cooperating companies could generate tens of thousands of jobs in the future – both directly in the mining sector and in services, logistics or mining-related industries.

The Canadian company also declares cooperation with local entities and technological institutions. Last year, an agreement was signed on cooperation with the Interior Technology Park in Nowa Sól.

At the same time, the investment may also raise questions about the impact on the environment, water management and local infrastructure. It is environmental issues that will be one of the key elements of the procedure for obtaining administrative approvals.

Lumina Metals prepares to go public

The company is also preparing for a large entry into the capital market. Lumina Metals plans to debut on the Toronto Stock Exchange and simultaneously list its shares on the Warsaw Stock Exchange. The company wants to raise hundreds of millions of dollars for the development of copper projects in Poland.

The funds raised are to be used mainly for further design works, boreholes, technical documentation and preparation of infrastructure related to the future mine near Nowa Sól.