Sierra Gorda’s copper in the Japanese smelters

Sierra Gorda is one of the world’s largest copper and molybdenum mines. During its ramp-up process, which is going to last until mid-2015, the daily production of copper concentrate is being gradually increased. In December 2014, the mine is going to produce around 700 tonnes of concentrate per day, with a high (ca. 30 percent) copper content and a very low level of impurities.

„The quality of the copper concentrate produced in Sierra Gorda is one of the highest available on the international markets. We see a significant demand for this product from copper smelters. The fact that we managed to reach this quality with the first shipment and during the mine’s ramp-up process deserves recognition and serves as a great sign for the future. I have no doubts this is just the beginning of Sierra Gorda enjoying successes and having growing impact on the global copper markets,” said Herbert Wirth, President and CEO of KGHM.

After the mine’s ramp-up is completed, Sierra Gorda is going produce 120 thousand tonnes of copper, 50 million lbs. of molybdenum and 60 thousand oz. of gold annually. Each day, the mine will ship an average of one train with copper concentrate to the port. Half of this concentrate will be processed by Sumitomo Metal Mining, which co-owns the Sierra Gorda mine. The first shipment of concentrate, which left the port in Antofagasta on 25 October 2014, will also be processed in Sumitomo’s Toyo smelter.

“I feel deeply happy to have today’s ceremony in Niihama, which is the cradle of Sumitomo. And I think that today we are adding a new page to the history of the relationship between Sumitomo, Sierra Gorda and KGHM. After the mine's expansion, 30% of copper cathodes in Toyo Smelter will originate from Sierra Gorda. I expect that the Sierra Gorda mine will be a stable source of supply of raw material to Sumitomo Metal Mining for a long time,” said Yoshiaki Nakazato, President and Representative Director of Sumitomo Metal Mining.

Until now, three ships with a total of around 15 thousand tonnes of Sierra Gorda’s copper concentrate have sailed out from the Chilean ports of Antofagasta and Arica. Two of these ships are being expected in the Chinese port of Qingdao. The fourth ship, with more than 10 thousand tonnes of concentrate, is going to reach the port of Lianyungang in China at the beginning of 2015.