{"id":1116406,"date":"2019-05-16T14:00:21","date_gmt":"2019-05-16T14:00:21","guid":{"rendered":"http:\/\/www.mining.com\/?p=987844"},"modified":"2019-05-16T20:00:21","modified_gmt":"2019-05-16T20:00:21","slug":"polands-kghm-hits-production-record-thanks-to-sierra-gorda-copper-mine","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1116406","title":{"rendered":"Poland\u2019s KGHM hits production record thanks to Sierra Gorda copper mine"},"content":{"rendered":"

Polish miner KGHM (WSE:KGH), Europe’s second-largest copper producer, hit record output in the first three months of the year<\/a>, thanks partly to improved production at its money-sucking Sierra Gorda mine<\/a> in Chile.<\/p>\n

The state-controlled company, which has been\u00a0criticized for the steep investment allocated<\/a>\u00a0to developing the Chilean asset ($5.2B and counting), churned out 142,000 tonnes of copper in the first quarter of the year. That represents a 28% increase when compared to the same period in 2018.<\/p>\n

The miner, which is in the midst of reviewing all of its foreign mining projects<\/a> (excluding the ones in Chile),\u00a0also posted its best quarterly results in the last three years, with revenue rising by PLN 1.2 billion (about $312 million).<\/p>\n

Europe’s second-largest copper producer also posted its best quarterly results in the last three years, with revenue rising by PLN 1.2 billion (about $312 million)<\/q><\/p>\n

KGHM attributed the performance improvement mainly due to a higher volume of sales of copper and silver, as well as a more favourable exchange rate.<\/p>\n

\u201cThe best EBITDA by the Group in a year, the best production results by KGHM Polska Mied\u017a S.A. in three years, and finally the higher net profit are the result of the consistent implementation of the Strategy of KGHM adopted last year,\u201d board president Marcin Chludzi\u0144ski said in a statement<\/a>.<\/p>\n

Pawel Gruza, deputy chief executive in charge of foreign assets, noted the company expected to keep up the good results on the back of Sierra Gorda, which is expected to produce more copper than originally planned this year, while keeping capital expenditure (capex) below target.<\/p>\n

The operation, a joint venture 55% owned by KGHM and 45% by Japan’s Sumitomo Metal Mining Co Ltd,\u00a0began production in July 2014<\/a>\u00a0with an expected output of 220,000 tonnes of copper a year once an ongoing expansion<\/a> is completed.<\/p>\n

The Polish miner grabbed the copper and molybdenum asset in 2012, after\u00a0completing the acquisition of Canadian rival Quadra FNX<\/a>, in what was the largest-ever foreign acquisition by a Polish company.<\/p>\n

The company had planned to expand Sierra Gorda earlier, but the 2015-2016 rout in commodity prices forced the company to\u00a0place the project on the backburner<\/a>.<\/p>\n

Last year, KGHM was\u00a0granted environmental approval<\/a>\u00a0for a\u00a0$2B expansion and upgrade<\/a>\u00a0of the mine, which would extend its productive life by 21 years.<\/p>\n

The improvements include increasing the capacity of the facility’s mill from 190,000 tonnes to 230,000 tonnes per day, though overall production of copper cathodes will stay at 55,000 tonnes.<\/p>\n

The mine is expected to process 130,000 tonnes of copper per day this year, according to KGHM.<\/p>\n

The post Poland\u2019s KGHM hits production record thanks to Sierra Gorda copper mine<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Europe’s second-largest copper producer also posted its best quarterly results in the last three years, with revenue rising by PLN 1.2 billion (about $312 million).<\/p>\n

The post Poland’s KGHM hits production record thanks to Sierra Gorda copper mine<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[539,424,2005,404,369,2640],"tags":[28,33,71],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1116406"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1116406"}],"version-history":[{"count":5,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1116406\/revisions"}],"predecessor-version":[{"id":1116603,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1116406\/revisions\/1116603"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1116406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1116406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1116406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}