https://www.miningweekly.com

KGHM starts Chile copper mine that would lower company-wide costs

Sierra Gorda, Chile

Sierra Gorda, Chile

Photo by KGHM

1st August 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – The world’s largest silver and eighth-biggest copper producer KGHM this week started processing ore at its Sierra Gorda copper mine, in the Antofagasta region of Northern Chile.

The company on Thursday said it had completed the prestripping process and had launched critical processes such as crushing, grinding and flotation plants.

It has also built a 143 km seawater pipeline to supply a nearby 750 000 m³ pond.

The Sierra Gorda mine is the world’s seventh-largest copper project.

KGHM said it intended to boost mine output early next year to produce 120 000 t/y of copper, 50-million pounds a year of molybdenum and 60 000 oz/y of gold.

After the second phase had been completed, output would total about 220 000 t of copper, 25-million pounds of molybdenum and 64 000 oz of gold over its 20-year life.

"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. 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,” KGHM executive VP and CFO Jaroslaw Romanowski said.

Sierra Gorda GM Maciej Sciazko added that pending resolution of the outstanding appeal to the Supreme Court on the Port of Antofagasta environmental permit, the project had put in place contingency arrangements.

"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,” he noted.

The mine was expected to ship the first copper concentrate in September.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

PGMs and green hydrogen make headlines
PGMs and green hydrogen make headlines
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.11 0.151s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: