KGHM and South32 have initiated a $725 million expansion project for the Sierra Gorda mine in Chile, aiming to boost copper production. The expansion will add a fourth grinding line, increasing the Antofagasta operation’s ore-processing capacity by 26%. Construction is set to begin in January 2027, with full operational capacity expected by the second half of 2030. The project is expected to raise annual copper output to nearly 200,000 tonnes and reduce average operating unit costs by about 10%. The investment follows reports of declining productivity in Chile’s mining sector.
The expansion is part of a broader strategy to enhance efficiency and output at the Sierra Gorda mine, which is a key component of South32’s operations in Chile. The project is backed by investment approval from South32, which highlights the company’s commitment to maintaining its position in the global copper market. With the new capacity, the mine is expected to contribute significantly to Chile’s mining output, despite challenges in the industry.