The company said that it completed the pre-stripping process, launched key processes such as crushing, grinding and flotation plants. It has also built 143km seawater pipeline to supply a nearby 750,000m³ pond.
KGHM intends to boost production at the mine by early 2015, and produce 120,000t of copper, 50 million lbs of molybdenum and 60,000oz of gold each year.
Following the phase II, the production at the mine will be around 220,000t of copper, 25 million lbs of molybdenum and 64,000oz of gold over its 20-year life.
KGHM executive vice-president and CFO Jaroslaw Romanowski said: "With production from Sierra Gorda, the weighted average cost of copper production in the KGHM Group will decrease, thereby enhancing the company’s operational security.
"This cost performance will be influenced by sales of Sierra Gorda’s additional products, including gold and molybdenum, whose prices are at the moment almost one fourth higher than originally planned."
Sierra Gorda general manager Maciej Sciazko said: "Pending resolution of the outstanding appeal to the Supreme Court on the Port of Antofagasta environmental permit, the project has put in place contingency arrangements.
"Half of the mine’s copper production will be processed by Sumitomo Metal Mining, our partner in Sierra Gorda, at its smelters in Japan. The remaining copper production will be sold worldwide."
The mine is expected to ship the first copper concentrate in September.
Image: KGHM plans to ship the first copper concentrate in September Photo: courtesy of KGHM Polska Miedz S.A.
