Sierra Gorda to be profitable in 3-4 years – KGHM CEO

WSE-listed, state-run copper and silver giant KGHM’s Chilean copper mine in Sierra Gorda could be profitable in 3-4 years, company’s CEO Radosław Domagalski said. “We have much better control of the Sierra Gorda project and can fully say we want to stay. There is a huge space for improvement within the current model,” he said. KGHM hopes that the mine will reach 100,000 metric tons production level this year, after producing 94,000 tons in 2016. The mine was originally intended to be a two-phase project, but the plans for the second stage have been shelved. “We changed the operational model. We have shortened the life of the mine. The shareholders are not ready to contribute additional billions of dollars. Phase two is not considered at this moment and I wouldn't think we'd come back to the idea,” Domagalski explained. Sierra Gorda is a joint venture of KGHM (55 percent stake) and Japanese Sumimoto (45 percent stake). It was acquired in 2011 for $2 billion along with other assets in a purchase of Quandra FNX.