South32 continues to advance its strategic objectives with significant developments at the Sierra Gorda copper mine in Chile.
The company has declared the mine’s first JORC-compliant ore reserve estimate of 782 million tonnes, with a copper equivalent grade of 0.44 per cent.
This estimate represents an initial reserve life of 16 years, with substantial growth potential as further drilling explores additional resources.
South32 also has plans to increase Sierra Gorda’s plant throughput by approximately 20 per cent through the addition of a fourth grinding line. This expansion is expected to enhance copper production and reduce operating costs, with a final investment decision to be made on the project in the second half of 2024.
Also, an exploration drilling campaign at the nearby Catabela Northeast prospect and studies on unlocking value from stockpiled oxide material are underway.
South32 purchased a 45 per cent interest in Sierra Gorda in February 2022, with Polish company KGHM Polska Miedź owning the balance.
The company’s Sierra Gorda expansion plans come as the company recently exited Australian coal, selling Illawarra Metallurgical Coal to M Resources and Golden Energy and Resources.
“The sale of Illawarra Metallurgical Coal is a significant milestone in the transformation of our portfolio towards commodities critical to a low carbon future,” South32 chief executive officer Graham Kerr said.
“The transaction will simplify our business, strengthen our balance sheet and reduce our capital intensity, unlocking capital to invest in our high-quality development projects in copper and zinc.”
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