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Polish mining giant starts operations in Chile

PR dla Zagranicy
John Beauchamp 31.07.2014 10:10
Polish mining and minerals giant KGHM started operations at its Chilean site in Sierra Gorda, the company announced, Wednesday.
KGHM's Sierra Gorda mine Photo courtesy: KGHM press materialsKGHM's Sierra Gorda mine Photo courtesy: KGHM press materials

KGHM's
KGHM's Sierra Gorda mine in Chile. Photo courtesy: KGHM press materials

The Sierra Gorda site is to comprise 42 percent of KGHM’s annual production, with the site ripe for future development due to rich copper, molybdenum and gold reserves.

“It is one of the largest and fastest-developed mining projects in the world,” the KGHM press release states, adding that the mine will be opened in an official ceremony this autumn.

After the mine is developed further in early 2015, the Sierra Gorda mine will produce 120,000 tons of copper, 50 million pounds of molybdenum and 60,000 ounces of gold annually.

However, after the next phase is completed the company announced that it will ramp up its average production capacity to 220,000 tons of copper, 25 million pounds of molybdenum and 64,000 ounces of gold annually over the 20 years.

“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 Jaroslaw 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,” the statement continues.

The Sierra Gorda mine is operated by KGHM International and is a joint venture between KGHM (55 percent), Japan-based Sumitomo Metal Mining (31.5 percent) and the Sumitomo Corporation (13.5 percent).

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

Source: PAP/KGHM

tags: KGHM
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