en.Wedoany.com Reported - Diversified mining company South32 announced on July 1, 2026, that the fourth grinding line project at the Sierra Gorda open-pit copper mine in Chile has received final investment approval following the completion of a feasibility study. The project is expected to increase the annual processing capacity of the Sierra Gorda mine from 48 million tons to 60 million tons.

Located in the Antofagasta region of northern Chile, Sierra Gorda is a large conventional open-pit copper mine. South32 holds a 45% stake in the mine, while Polish copper group KGHM holds the remaining 55%. The project is expected to achieve first production in fiscal year 2030 and reach full production in fiscal year 2031.

South32 expects that after the expansion, the Sierra Gorda mine's average payable production will reach 195,000 tons of copper, 6,000 tons of molybdenum, 58,000 ounces of gold, and 1.7 million ounces of silver, representing a 30% increase in copper equivalent production compared to current levels. The increased processing capacity is expected to reduce average operating unit costs by 10%. The growth capital expenditure budget for the expansion project is $725 million, with spending spread between fiscal years 2027 and 2030.

South32 CEO Matt Daley stated that the strong operational performance and robust cash flow at Sierra Gorda provide a foundation for value-accretive copper production growth in this long-life, high-margin operation. The fourth grinding line project will significantly increase copper production and reduce operating unit costs. Additionally, the recently announced preliminary exploration target for the Catabela northeast exploration area at the Sierra Gorda mine ranges from 1.1 billion tons (total copper grade 0.48%) to 2.9 billion tons (total copper grade 0.45%), highlighting the potential to further extend the mine's life.