{"id":486885,"date":"2017-05-11T10:53:54","date_gmt":"2017-05-11T10:53:54","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=486885"},"modified":"2017-05-11T10:53:54","modified_gmt":"2017-05-11T10:53:54","slug":"kghm-says-phase-two-of-sierra-gorda-copper-mine-in-chile-will-never-happen-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=486885","title":{"rendered":"KGHM says phase two of Sierra Gorda copper mine in Chile will never happen"},"content":{"rendered":"

By analyst<\/a><\/span> <\/p>\n

By Cecilia Jamasmie<\/a><\/span> <\/p>\n

Polish miner KGHM (WSE:KGH), Europe’s second-largest copper producer, has decided to ditch a planned second phase of expansion<\/a> of its Sierra Gorda mine in Chile on the back of high production costs an falling metal prices.<\/p>\n

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

The Polish company, Europe’s second-largest copper producer, said that given current macro conditions, the plan \u201chad lost sense.\u201d<\/p>\n

At the time of the deal, LME three-month copper prices were nearing $10,000 per tonne. Currently, LME copper is around $5,500 per tonne.<\/p>\n

Announcing the decision, KGHM \u2014 which chose to delay the intended expansion<\/a> last year \u2014 said that given current macro conditions, the plan \u201chad lost sense,\u201d Diario Financiero reports<\/a> (in Spanish).<\/p>\n

Chief executive Radoslaw Domagalski-Labedzki also noted that the company had no intentions of revisiting the idea in the future.<\/p>\n

The news didn’t surprised investors, as asset impairment charges related to Sierra Gorda had already been hurting KGHM, pushing its financial results into the red in both 2015 and 2016.<\/p>\n

Adding to KGHM’s troubles, the Polish government ordered early last year an audit into its foreign assets<\/a> in direct reaction to the financial situation at the Chilean mine.<\/p>\n

Sierra Gorda, a joint venture 55% owned by KGHM and 45% by Japan’s Sumitomo Metal Mining Co Ltd, began production in July 2014<\/a> with an expected output of 220,000 tonnes of copper a year once the now aborted expansion was completed.<\/p>\n

Last year, it produced around 98,000 tonnes of copper, according to figures published by Chile’s government.<\/p>\n

The post KGHM says phase two of Sierra Gorda copper mine in Chile will never happen<\/a> appeared first on MINING.com<\/a>.<\/p>\n

\u2026read more<\/a> <\/p>\n

Source:: Infomine<\/a><\/p>\n

The post <\/a>KGHM says phase two of Sierra Gorda copper mine in Chile will never happen<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By analyst By Cecilia Jamasmie Polish miner KGHM (WSE:KGH), Europe’s second-largest copper producer, has decided to ditch a planned second phase of expansion of its Sierra Gorda mine in Chile on the back of high production costs an falling metal prices. The state-controlled company grabbed the copper and molybdenum project in 2012, after buying Canadian […]<\/p>\n","protected":false},"author":1,"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":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/486885"}],"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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=486885"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/486885\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=486885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=486885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=486885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}