en.Wedoany.com Reported - Sierra Gorda SCM plans to invest $100 million in exploration to extend the operational life of its Chilean copper-molybdenum mine from 2035 to 2049. The strategy also includes evaluating an increase in the concentrator's daily processing capacity from 130,000 metric tons to 165,000 metric tons. Company General Manager Marcelo Bustos disclosed the plan in an interview with El Mercurio, as reported by Reuters and republished on MINING.COM.
Sierra Gorda SCM's strategy is divided into three directions. First is the $100 million exploration campaign, planned for execution between 2028 and 2032. Second is extending the mine life to 2049. Third is evaluating increasing the concentrator's capacity from the current 130,000 metric tons per day to 165,000 metric tons. The exploration plan will be submitted through an Environmental Impact Assessment in 2026, the mine life extension project is expected to be submitted between 2027 and 2028, and a decision on whether to expand the concentrator should be made within this year.
Sierra Gorda SCM operates an open-pit copper-molybdenum mine in the city of Sierra Gorda, deep in the Atacama Desert, owned by Poland's KGHM Polska Miedź (55% stake) and Australia's South32 (45% stake). The mine began trial operations in 2014 and started commercial production on July 1, 2015, with copper concentrate as the main product, molybdenum as a significant by-product, and minor amounts of gold and silver. In 2023, the mine processed an average of 130,121 metric tons of ore per day, producing 150,198 tons of copper and 2,982 tons of molybdenum. The concentrator's approved capacity is 230,000 tons per day, but actual throughput fluctuates between 110,000 and 130,000 tons.
This exploration investment aims to find and confirm resources to sustain longer operations, not to immediately expand production. For Sierra Gorda, which mines a low-grade porphyry copper deposit, profitability depends on large-scale processing, operational continuity, and cost control. Extending the mine life to 2049 helps maintain demand in the Antofagasta Region for suppliers, specialized services, transportation, energy, and other industries.
Sierra Gorda's water supply model is a distinctive feature in Chilean mining. The company operates using 100% non-desalinated seawater, sourced from the cooling system of a power plant in Mejillones and transported to the mine via a 144-kilometer pipeline. In 2023, its operations also achieved 100% renewable energy supply. The company also employs High-Pressure Grinding Roll (HPGR) technology to improve energy efficiency in ore processing.
For Chile, this announcement comes amid broader challenges: maintaining its position in the global copper market in an environment of growing demand for electrification and renewable energy. Future supply depends not only on new projects but also on the ability to extend the life of existing operations, optimize cut-off grades, and improve concentrator performance. The first milestone will be the submission of the Environmental Impact Assessment for the exploration plan in 2026, followed by a focus on the mine life extension project between 2027 and 2028, when key data such as the new mining plan, operational years, infrastructure changes, tailings requirements, energy consumption, and expected production will be disclosed. The decision to increase concentrator capacity to 165,000 tons per day will also be a critical point. Sierra Gorda is striving to ensure continuity beyond 2035, positioning exploration as the foundation for a new operational phase.
