KGHM invests $725 million to expand Sierra Gorda mine in Chile

KGHM has launched a $725 million expansion project at its Sierra Gorda copper mine located in Chile's Atacama Desert. This represents the largest foreign investment in the history of the Polish mining company. The project involves the construction of a fourth grinding line, which is expected to increase ore processing capacity from approximately 48 million to 60 million tons annually.

This expansion is projected to boost copper production by roughly 20 percent. The Sierra Gorda operation is a joint venture where KGHM holds a 55 percent stake and the Australian group South32 holds 45 percent. The mine currently operates at depths of approximately 700 meters, with plans to reach 1,000 meters. The facility utilizes advanced technology, including electric excavators, autonomous drilling machines, and a fleet of 76 haul trucks.

The expansion is scheduled for completion by the end of 2029 and is expected to create approximately 900 new jobs. KGHM CEO Remigiusz Paszkiewicz noted that the mine has begun repaying loans and previous investments as of 2025. The site remains a critical asset for the company, with confirmed resources reaching one billion tons of ore.