Name of the Project
Sierra Gorda fourth grinding line project.

Location
Antofagasta region of northern Chile.

Project Owner/s
Sierra Gorda Joint Venture (JV) comprising South32 (45%) and KGHM Polska Mied (55%).

Project Description
The brownfield expansion is expected to increase Sierra Gorda’s processing capacity from an estimated 48-million tonnes a year to about 60-million tonnes a year through the installation of a fourth grinding line, expanded crushing and flotation capacity, and associated process infrastructure. 

Once the project is complete, Sierra Gorda’s average payable production is expected to be about 195 000 t/y of copper, 6 000 t/y of molybdenum, 58 000 oz/y of gold and 1.7-million ounces of silver (about 250 000 t copper equivalent (CuEq) on a 100% basis), representing an estimated 30% increase in CuEq production relative to current levels.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project is expected to deliver an internal rate of return of about 20% at a long-term copper price of $5/lb or about 23% at a long-term copper price of $6/lb.

Capital Expenditure
Capital expenditure is estimated at $725-million (100% basis) from the 2027 to 2030 financial years. The project will be funded from operating cash flow and Sierra Gorda joint venture debt facilities.

Planned Start/End Date
The project is expected to achieve first production in the 2030 financial year, with full production rates in the 2031 financial year.

Latest Developments
The Sierra Gorda JV announced its approval of the project in July 2026.

Key Contracts, Suppliers and Consultants
None disclosed.

Contact Details for Project Information
South32 (group headquarters), tel +61 8 9324 9000.