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Poland's KGHM started copper production at the Sierra Gorda mine in Chile 2014.08.02

Sierra Gorda, Antofagasta Region, Chile and Lubin, Poland - July 31, 2014 - Poland's KGHM - the world's leading copper and silver producer - started feeding ore into the process plant in its Sierra Gorda mine in Chile this week. It is one of the largest and fastest-developed mining projects in the world. The mine's opening ceremony is planned this autumn, in the presence of Polish, Chilean and Japanese authorities. After the mine's ramp-up, which is scheduled to be completed in early 2015, Sierra Gorda will produce 120 thousand tons of copper, 50 million lbs. of molybdenum and 60 thousand oz. of gold annually. Once phase II of the project is completed, the annual average production will reach 220 thousand tons of copper, 25 million lbs. of molybdenum and 64 thousand oz. of gold over the mine's 20 year life. There is additional production potential in the processing of oxide ore. First copper cathodes have already been produced after initial tests. Sierra Gorda SCM, operated by KGHM International, is a joint venture between KGHM (55%), Sumitomo Metal Mining (31.5%) and the Sumitomo Corporation (13.5%). The mine is located in the Antofagasta region within the Atacama Desert, which is Chile's largest copper producing region.

Sierra Gorda, Chile. First copper concentrate will be shipped from Sierra Gorda in September 2014.
Courtesy of KGHM
 

Sierra Gorda, Antofagasta Region, Chile and Lubin, Poland – July 31, 2014

Poland’s KGHM – the world’s leading copper and silver producer – started feeding ore into the process plant in its Sierra Gorda mine in Chile this week.

It is one of the largest and fastest-developed mining projects in the world.

The mine’s opening ceremony is planned this autumn, in the presence of Polish, Chilean and Japanese authorities.

Sierra Gorda - CU Thickener. First copper concentrate will be shipped from Sierra Gorda in September 2014.
Courtesy of KGHM
 
The key infrastructure elements for production of copper concentrates have been successfully completed and commissioned
: the pre-stripping process at the mine pit was completed in April 2014, with a total of 192 million tons of material removed; at the plant site the key processes such as crushing, grinding and flotation plants were successfully launched; in addition, the 143 kilometre seawater pipeline is operational, providing seawater to the 750,000 cubic meters seawater pond.

Dr. Herbert Wirth, President and CEO of KGHM.
Courtesy of KGHM
 
“We and our partners developed this project remarkably quickly, while at the same time maintaining the highest safety and environmental standards,”
said Herbert Wirth, President and CEO of KGHM.
“It took us only ten years from exploration drills to actual production. This very fast pace could only be achieved because we have the highest managerial standards.”

Sierra Gorda, Chile. First copper concentrate will be shipped from Sierra Gorda in September 2014.
Courtesy of KGHM
 
After the mine’s ramp-up, which is scheduled to be completed in early 2015, Sierra Gorda will produce 120 thousand tons of copper, 50 million lbs. of molybdenum and 60 thousand oz. of gold annually
.

Once phase II of the project is completed, the annual average production will reach 220 thousand tons of copper, 25 million lbs. of molybdenum and 64 thousand oz. of gold over the mine’s 20 year life.

There is additional production potential in the processing of oxide ore.

First copper cathodes have already been produced after initial tests.

Jarosław Romanowski, Executive Vice President and CFO of KGHM.
Courtesy of KGHM
 
“With production from Sierra Gorda, the weighted average cost of copper production in the KGHM Group will decrease, thereby enhancing the Company’s operational security,”
said Jarosław Romanowski, Executive Vice President and CFO of KGHM.
“This cost performance will be influenced by sales of Sierra Gorda’s additional products, including gold and molybdenum, whose prices are at the moment almost one fourth higher than originally planned.”

First copper concentrate will be shipped from Sierra Gorda in September of this year.

Sierra Gorda, Chile - Floatation panoramic.
Courtesy of KGHM
 
“Pending resolution of the outstanding appeal to the Supreme Court on the Port of Antofagasta environmental permit, the project has put in place contingency arrangements,”
said Maciej Ściążko, General Manager at Sierra Gorda.
“Half of the mine’s copper production will be processed by Sumitomo Metal Mining, our partner in Sierra Gorda, at its smelters in Japan. The remaining copper production will be sold worldwide.”

Sierra Gorda - Sea Water Pool.
Courtesy of KGHM
 
Sierra Gorda SCM, operated by KGHM International, is a joint venture between KGHM (55%), Sumitomo Metal Mining (31.5%) and the Sumitomo Corporation (13.5%).

The mine is located in the Antofagasta region within the Atacama Desert, which is Chile’s largest copper producing region.



Contacts

Public Relations Department
KGHM Polska Miedź S.A.

ul. M. Skłodowskiej-Curie 48
59-301 Lubin
tel. +48 76 74 78 277
e-mail: komunikacja@kghm.pl  

Spokesperson
Dariusz Wyborski

tel. +48 76 74 78 277
e-mail: rzecznik@kghm.pl  


KGHM Polska Miedź S.A. HQ in Lubin, Poland.
Courtesy of KGHM
 

Source: Communications Department, KGHM Polska Miedź S.A.

http://www.kghm.pl/  



ASTROMAN Magazine - 2012.12.16

200 mln PLN na badania i rozwój w przemyśle metali nieżelaznych. KGHM Polska Miedź daje 100 mln PLN

http://www.astroman.com.pl/index.php?mod=magazine&a=read&id=1371  


ASTROMAN Magazine - 2012.05.25

Herbert Wirth, prezes KGHM Polska Miedź SA, Najlepszym Managerem 2011 roku

http://www.astroman.com.pl/index.php?mod=magazine&a=read&id=1242  


ASTROMAN Magazine - 2012.05.01

World Silver Survey: Poland's KGHM was the world's largest producer of silver in 2011

http://www.astroman.com.pl/index.php?mod=magazine&a=read&id=1230  


ASTROMAN Magazine - 2012.02.20

Quadra FNX Securityholders Approve Plan of Arrangement with KGHM Polska Miedź S.A.

http://www.astroman.com.pl/index.php?mod=magazine&a=read&id=1183  



Editor-in-Chief of ASTROMAN magazine: Roman Wojtala, PhD.


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