KGHM begins $725 million expansion of Sierra Gorda mine in Chile

KGHM Polska Miedź and Australian partner South32 have officially commenced the expansion of the Sierra Gorda mine in Chile. The project, which involves the construction of a fourth grinding line, represents a $725 million investment aimed at increasing the facility's production capacity by 20 percent.

Sierra Gorda, an open-pit copper and molybdenum mine located in the Atacama Desert, is a joint venture where KGHM holds a 55 percent stake and South32 holds 45 percent. KGHM CEO Remigiusz Paszkiewicz noted that the mine has become a critical asset, with foreign assets contributing 50 percent of the group's EBITDA in the first half of this year.

Separately, KGHM's stock market performance shows signs of technical volatility. After reaching record highs in January, the share price has entered a period of consolidation between 290 and 385 PLN. Recent trends indicate the stock is testing long-term support levels near the 200-session moving average, with analysts watching the 300 PLN level closely.