The Management Board of KGHM Polska Miedź S.A. announces the beginning of commercial production by the Sierra Gorda mine in Chile. The declaration of commercial production is based on the following criteria:
- Quantity & Quality - Sierra Gorda is producing saleable product, available for placement in the market. The copper plant has been operating for over 60 days at 65% of its designed capacity. Simultaneously, the molybdenum plant has produced molybdenum concentrate with at least 40% molybdenum content.
- Expenditures - all major expenditures have been incurred to bring the mine to the condition necessary, and in the manner intended by management, for commercial production to commence.
- Handover and operation - the plant was handed over to the operating personnel.
The first copper production commenced on July 30, 2014. The molybdenum plant commenced production on April 14, 2015. The production of copper and molybdenum reached a consistent and predictable level at the end of June 2015.
From the 1st of July 2015 Sierra Gorda will provide operational income statements.
Based on current assumptions, annual average production by the mine, after completing Phase 2 of the project, will amount to approximately 220 thousand tonnes of copper, 25 million pounds of molybdenum and 64 thousand ounces of gold.
The Sierra Gorda joint venture is owned by the following partners: KGHM International (55% – a subsidiary of KGHM Polska Miedź S.A.), Sumitomo Metal Mining (31.5%) and Sumitomo Corporation (13.5%).
Legal basis: art. 56 section 1 point 1 of the Act dated 29 July 2005 on public offerings and conditions governing the introduction of financial instruments to organised trading, and on public companies (unified text: Journal of Laws 2013.1382).