Poland’s KGHM says Chile mine may not need support from next year

Polish copper producer KGHM’s Sierra Gorda mine in Chile is likely to no longer need financial support from next year, it said on Thursday as the mine posted a 150% leap in second-quarter core profit despite risks related to coronavirus.

KGHM owns a 55% stake in Chile’s Sierra Gorda copper-molybdenum mine in the Atacama Desert that produces around 110 000 t/d of ore.

Sierra Gorda’s EBITDA in the second quarter jumped by 150% year on year to 324million zlotys on record high production, KGHM said.

"We are looking with optimism at Sierra Girda’s future financial results," Pawel Gruza, KGHM deputy head in charge of foreign assets told a press conference.

He added that starting from next year, Sierra Gorda would no longer need financial support from its owners, a year later than initially planned due to the pandemic.