KGHM abandons stage II Sierra Gorda development

WSE-listed copper and silver producer will not be seeking to continue the second phase of development of its Chilean Sierra Gorda copper mine. “In current macroeconomic situation, the further development of the mine has lost its purpose. It is not being considered at this moment,” KGHM CEO Radosław Domagalski-Łabędzki said. The company will focus on increasing production from the stage I, and will seek out optimization processes. KGHM plans to increase daily processing capacity to 140,000 metric tons. The company acquired 55 percent stake in the Chilean copper deposits in 2011 for $2 billion, making it the largest foreign acquisition by a Polish company. Japanese Sumitomo holds the remaining stake.