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KGHM and South32 start $725 million Sierra Gorda expansion
The project will add a fourth grinding line that boosts ore-processing capacity by 26%, with construction slated to start in January 2027.
KGHM and South32 have begun a $725 million expansion of their Sierra Gorda mine in Chile, with the effort aimed at increasing annual copper output to nearly 200,000 tonnes, Mining.com reports. The companies said the expansion adds a fourth grinding line at their Antofagasta operation, lifting ore-processing capacity by 26%.
Construction is scheduled to start in January 2027, and the expanded plant is expected to reach full capacity in the second half of 2030, according to Mining.com. The project targets average annual payable copper production of about 195,000 tonnes and a roughly 10% reduction in average operating unit costs, based on South32’s investment approval announcement.
Mining.com also reports that Chile’s mining industry is facing declining production, putting pressure on the world’s largest copper-producing country to bring additional capacity online. Economy and mining minister Daniel Mas said projects such as Sierra Gorda would help bridge the transition and an expansion cycle expected to begin in 2027.
KGHM owns 55% of Sierra Gorda, while South32 holds 45%, and the joint venture Sierra Gorda SCM will manage the project. Mining.com said the expansion is expected to create about 900 direct construction jobs.
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