KGHM plans to increase production at Sierra Gorda

WSE-listed silver and copper giant KGHM expects daily copper ore output at its Chilean mine Sierra Gorda to increase by 18 percent next year from current levels to reach 130k metric tons. KGHM will also commission the copper concentrate roasting installation by the end of 2018, the firm said. Completion of the installation is planned for Q3. KGHM acquired Sierra Gorda back in 2011, for $2 billion. However, a fall in copper prices and technical issues in starting production there increased the project’s costs and resulted in a significant write-down of the asset value. “If the good macro conditions and prices continue and the mines' efficiency improves further, we might at some point decide to reverse the Sierra Gorda impairments. Tests that we conducted by the end of 2017 showed, however, that at present such a reversal is not necessary,” the company said in its financial report. The mine currently produces 110,000 metric tons of copper ore a day.