KGHM’s mine in green – Sierra Gorda powered by electricity from RES

Mining of the future with energy from the sun, water, and wind - KGHM’s Sierra Gorda mine in Chile operates solely with electricity from Renewable Energy Sources. Energy is supplied to the mine from an new photovoltaic power station located in the Antofagasta area.

“It’s not words but actions that make KGHM a world leader in the mining industry. Energy transition is no longer just a great opportunity for us, but also involves real action,” said Tomasz Zdzikot, the CEO of KGHM Polska Miedź S.A.

Since early January, electricity has been supplied to the Sierra Gorda mine from AES Andes’ portfolio of wind, solar, and hydroelectric power stations, as well as energy storage systems.

Sustainability and care for the environment at Sierra Gorda has become a reality. During the day, the mine is powered by electricity from RES. At night, the electricity comes from Latin America’s largest energy storage facility, which is part of the AES Andes’ resources.

“The use of green energy in Sierra Gorda’s operations marks the completion of a two-year long process in which the mine transitioned from coal consumption to clean energy. Since its inception, the mine has implemented a number of innovations, such as the use of 100% seawater in mining processes. We have turned our ambitious goals into reality,” said Mirosław Kidoń, the Vice President for International Assets of KGHM Polska Miedź S.A. during a ceremony at Sierra Gorda.

Green power is one of Sierra Gorda’s strategic objectives. This change means stopping the emission of one million tons of carbon dioxide. The Sierra Gorda mine has signed a long-term power purchase contract with a third-party company. Its energy consumption in 2023 is estimated at approx. 1,310 GWh.

The Sierra Gorda mine is one of the main international assets in KGHM’s portfolio. In the mining process, the mine uses a number of innovative solutions such as high-pressure roller crushers, which minimize energy consumption with their crushing operation. On top of that, it is the first mining company in Latin America to use an autonomous robot that counts the stock in the equipment warehouse. The data is available immediately in an integrated system.

As in Poland, the Sierra Gorda mine supports its workers and the residents of the region. Firefighters from the communities of Antofagasta, Sierra Gorda, and Calama can count on equipment, donations, and training. The company runs the Sierra Gorda SCM Community Trainee program, whereby Sierra Gorda residents with no experience are prepared for work in the mining industry and, in many cases, are hired at the local mine.

To reflect the changes in the global market, KGHM updated its existing four strategic development directions (resilience, efficiency, ecology, and e-industry) with an additional fifth element - energy. The company is consistently diversifying its sources of electricity, focusing on energy from photovoltaic, wind, and hydrogen sources.

In 2021, KGHM adopted a Climate Policy, which sets out the company’s targets for greenhouse gas emissions until 2030 and 2050, as well as the scope and extent of the changes needed to achieve these targets. Achieving climate neutrality by 2050 is the overarching goal specified in KGHM’s document. An intermediate goal is to reduce total emissions by 30% by 2030 in relation to the base year of 2020.

KGHM’s goal is to produce 50% of the electricity it consumes in its own installations. We design and build PV installations in locations convenient for direct connection to the divisions that consume the energy. We are currently operating 10 photovoltaic projects in Poland.

Last year, the copper industry leader submitted the first application to the National Atomic Energy Agency for the evaluation of the small modular reactor (SMR) technology. The company’s investment plans also include Offshore Wind Energy. In this area, the company is working with TotalEnergies Renewables under a strategic cooperation agreement.