Commencement of production at the Sierra Gorda mine in Chile

Thursday, 31 July, 2014
Current report no. 23/2014

The Management Board of KGHM Polska Miedź S.A. announces that on 30 July 2014 the Sierra Gorda mine in Chile started their production.

Following the ramp-up period, which will be completed in early 2015, the Sierra Gorda mine will produce approximately 120 thousand tonnes of copper, 50 million pounds of molybdenum and 60 thousand ounces of gold annually in the first years of operations. The commencement of production at the Chilean mine will decrease the weighted average cost of copper production in the KGHM Group and will decrease its sensitivity to changes in the copper price, enhancing the Company’s operational security. Forecasted annual average production by the mine over the 20 year period of mine life, taking into account the commencement of the second phase of the project, will amount to 220 thousand tonnes of copper, 25 million pounds of molybdenum and 64 thousand ounces of gold.

The Sierra Gorda mine belongs to a joint venture company, whose shareholders are: an indirect subsidiary of KGHM Polska Miedź S.A. - KGHM International (55%), 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).