Sierra Gorda set for 25% processing capacity boost with fourth grinding line
The Sierra Gorda joint venture, a large open-pit copper mine in Chile in which South32 holds a 45% interest, has approved execution of the fourth grinding line project.
This followed completion of a feasibility study which confirmed the potential for attractive returns from this brownfield plant expansion, South32 noted.
The project is expected to increase Sierra Gorda’s processing capacity from approximately 48 Mt/y to approximately 60 Mt/y (100% basis) through the installation of a fourth grinding line, expanded crushing and flotation capacity, and associated process infrastructure.
The project is expected to achieve first production in the middle of South32’s 2030 financial year, with full production rates in the 2031 financial year.
Following completion of the project, Sierra Gorda’s annual average payable production is expected to reach approximately 195,000 t of copper, 6,000 t of molybdenum, 58,000 oz of gold and 1.7 Moz of silver. This represents an approximate 30% increase in copper equivalent production relative to current levels.
The expanded processing capacity is also expected to support an approximate 10% reduction in average operating unit costs.
South32 Chief Executive Officer, Matt Daley, said: “The fourth grinding line project will significantly increase copper production, lower operating unit costs and is expected to deliver attractive financial returns through a brownfield expansion that leverages existing infrastructure.
“Beyond this project, Sierra Gorda continues to offer substantial growth potential. The current Catabela pit remains open at depth and at the adjacent Catabela Northeast prospect we recently reported an initial exploration target of 1,100 Mt at 0.48% TCu to 2,900 Mt at 0.45% TCu, highlighting further life extension potential.”
The post Sierra Gorda set for 25% processing capacity boost with fourth grinding line appeared first on International Mining.