KGHM hopes to increase Sierra Gorda output. Might ‘permanently freeze’ its Canadian project

WSE-listed copper and silver giant KGHM is considering “permanently freezing” its copper and gold mining Ajax project in Canada after local authorities said it will not issue environmental certification for the project. "We are freezing this project in order to bear the minimum possible costs. Of course, the legal path is not entirely closed. We are waiting for the decision of the federal authorities. Then we will learn the final opinion of the Canadian authorities on the implementation of this project in its current form. We do not exclude the possibility of appeal against the decision,” company’s CEO Radosław Domagalski-Łabędzki said. On the other hand, the company is planning to increase the output of its Chilean Sierra Gorda copper mine by 20-30 percent. “The increased throughput from 110 kilotons in 2017 to 130-140 kilotons of ore daily in 2019-2020 will be a marked progress,” he explained. Increasing the output will not require any major investments in the scheme.