KGHM Polska Miedź (WSE:KGH) and South32 (ASX:S32) have marked the launch of a US$725 million ($1.04 billion) expansion at Chile’s Sierra Gorda Copper-Molybdenum Mine.
A foundation stone ceremony on 1 October marked the latest milestone for the fourth grinding line project, with construction scheduled to begin in early 2027, according to Chile’s Mining Ministry.
KGHM expects the expansion to lift annual ore processing capacity from about 48 million tonnes (Mt) to 60Mt and increase copper production by approximately 20%.
The project includes additional crushing, grinding, and flotation equipment, along with associated processing infrastructure.
Completion is scheduled for the end of 2029, with full production capacity expected in the second half of 2030.
KGHM says the expansion will use existing water and power infrastructure and is expected to reduce unit production costs. Funding will come from Sierra Gorda’s operating cash flows and available debt facilities.
The investment was previously announced on 1 July. The US$725 million estimate covers the whole project rather than either partner’s individual share.
KGHM owns 55% of Sierra Gorda, while South32 holds the remaining 45%.
Exploration is also continuing at the nearby Catabela Northeast area — part of the jointly owned Sierra Gorda operation — to assess its potential to extend the mine’s operating life.
Sierra Gorda is an open-pit copper and molybdenum operation in northern Chile’s Antofagasta region, about 60km southwest of Calama.
Write to France Pinzon at Mining.com.au
Main image: KGHM Polska Miedź
