South32, the multinational mining and metals company, has announced significant developments at its Sierra Gorda copper mine in Chile, marking a key step in its strategic portfolio transformation.
The company has established the first JORC-compliant ore reserve estimate for the mine, revealing 782 million tonnes with a copper equivalent grade of 0.44%. This initial reserve estimate translates to a 16-year mine life, with substantial growth potential as ongoing drilling campaigns explore additional resources.
South32 is further bolstering its operations at Sierra Gorda by increasing the plant's throughput by approximately 20%. This expansion will be achieved through the addition of a fourth grinding line, expected to boost copper production while simultaneously reducing operational costs. The final investment decision on this project is scheduled for the second half of 2024.
Beyond these expansions, South32 has initiated an exploration drilling campaign at the nearby Catabela Northeast prospect. Additionally, the company is actively exploring ways to unlock value from existing stockpiled oxide material.
South32 acquired a 45% stake in Sierra Gorda in February 2022, with Polish company KGHM Polska Miedź holding the remaining ownership.
The company's ambitious expansion plans at Sierra Gorda coincide with its recent exit from Australian coal. South32 recently divested its Illawarra Metallurgical Coal assets to M Resources and Golden Energy and Resources, aligning its portfolio with its commitment to low-carbon commodities.
"The sale of Illawarra Metallurgical Coal is a significant milestone in the transformation of our portfolio towards commodities critical to a low-carbon future," stated South32 chief executive officer Graham Kerr. "This transaction will streamline our operations, strengthen our financial position, and reduce our capital expenditure, allowing us to allocate resources to our high-quality development projects in copper and zinc."
The company's focus on expanding its copper production and divesting from coal demonstrates its commitment to a future powered by sustainable, low-carbon energy solutions. With the expansion of Sierra Gorda, South32 is poised to play a key role in meeting the growing global demand for copper, a critical component in renewable energy technologies and infrastructure.
