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Sierra Gorda plans a $725 million expansion in Chile.
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Processing capacity will rise from 48 million to 60 million tonnes a year.
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First production is expected in 2030, with full output in 2031.
Sierra Gorda, a major copper mine in northern Chile, is set to expand its processing capacity through a $725 million project designed to increase production of copper and other valuable minerals.
The expansion will involve installing a fourth grinding line and upgrading several parts of the mine’s processing infrastructure. Once completed, the project is expected to raise the mine’s annual processing capacity by 25% and increase its copper-equivalent production by about 30%.
New grinding line to increase processing capacity
The Sierra Gorda fourth grinding line project will be developed in Chile’s Antofagasta region by the Sierra Gorda joint venture, which is owned by South32, with a 45% stake, and Poland-based KGHM Polska Miedź, which holds the remaining 55%.
The brownfield expansion will increase the mine’s processing capacity from an estimated 48 million tonnes of ore annually to approximately 60 million tonnes.
The upgrade will include a fourth grinding line, expanded crushing and flotation capacity, and supporting process infrastructure. These improvements are intended to enable the mine to process more ore and increase the amount of valuable minerals recovered. The joint venture approved the project in July 2026, setting the stage for the planned expansion.
Copper production expected to rise by 30%
Once the project reaches full production, Sierra Gorda expects average annual payable output of approximately 195,000 tonnes of copper.
The mine is also projected to produce around 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver annually.
Combined, these volumes are equivalent to about 250,000 tonnes of copper equivalent a year, based on the project’s stated production estimates.
The anticipated increase represents approximately 30% growth in copper-equivalent production compared with current levels. The additional output could strengthen the mine’s contribution to global supplies of copper and other metals used across industrial and manufacturing sectors.
Project to cost $725 million
Capital expenditure for the expansion is estimated at $725 million on a 100% project basis, with spending planned across the 2027 to 2030 financial years.
The joint venture intends to fund the development through cash generated from operations and debt facilities available to Sierra Gorda.
The project’s expected financial returns will depend partly on long-term copper prices. Estimates indicate an internal rate of return of approximately 20% if copper trades at $5 a pound over the long term.
If the long-term copper price reaches $6 a pound, the projected internal rate of return could increase to around 23%.
These estimates underline the importance of copper prices to the project’s potential profitability, although actual returns will depend on operating performance, costs and market conditions.
Production targeted for 2030
The expansion is expected to deliver its first production in the 2030 financial year, with the mine projected to reach full production rates in the 2031 financial year.
The development will extend the mine’s existing processing infrastructure rather than establish an entirely new operation. This approach is intended to build on the existing asset while increasing its capacity.
The project’s success will depend on completing the planned infrastructure upgrades, managing capital costs and achieving the expected improvements in processing and mineral recovery.
The joint venture has not disclosed specific job creation estimates or identified the main contractors and suppliers for the project.
