KGHM stock reports USD 725 million Sierra Gorda expansion

KGHM has launched a USD 725 million expansion of its Sierra Gorda mine in Chile with partner South32. The project is designed to increase ore processing and copper production.

KGHM Polska Mied? has launched a USD 725 million expansion of its Sierra Gorda copper and molybdenum mine in Chile with partner South32. The company said in a October 2, 2026 release that a foundation stone had been laid for a fourth grinding line.

Higher processing capacity planned

The expansion is expected to increase annual ore processing capacity at Sierra Gorda from around 48 million tonnes to around 60 million tonnes and raise copper production by approximately 20%, according to KGHM. The new line will include a jaw crusher, an HPGR mill, a ball mill, flotation equipment and related process infrastructure.

Timeline and financing

KGHM said completion of the plant expansion is scheduled for the end of 2029, with full production capacity expected in the second half of 2030. The project is to be financed through operating cash flows and Sierra Gorda’s available debt instruments, the company said in its release. KGHM holds a 55% stake in the mine, while South32 owns 45%.