KGHM spends USD 4.156bn on Sierra Gorda launch
August 5, 2014
Poland’s copper & silver giant KGHM has spent in total USD 4.156 billion on the launch of its Sierra Gorda mine in Chile, CEO Herbert Wirth told a press conference.
"I can say today that the final cost of launch is USD 4.156 billion," Wirth said.
KGHM had initially estimated outlays on the project at USD 2.9 billion, later raised its estimate to USD 3.9 billion.
KGHM launched production at the mine on July 31, 2014. After the ramp-up period to be completed in early 2015, Sierra Gorda's annual output should reach 120,000 tons of copper, 50 million pounds of molybdenum and 60,000 ounces of gold, the firm said.
Average annual production over the total life of the mine (taking into account the second phase of the project) will amount to 220,000 tons of copper, 25 million pounds of molybdenum and 64,000 ounces of gold.Sierra Gorda's mine life is now estimated at 23 years.
The Sierra Gorda mine is a JV owned by KGHM unit KGHM International (55%), Sumitomo Metal Mining (31.5%) and Sumitomo Corporation (13.5%).