Polish KGHM has high hopes for Chilean copper mine-Shanghai Metals Market

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Polish KGHM has high hopes for Chilean copper mine

Company News 04:21:48PM Oct 22, 2013 Source:SMM

Mon, 21 Oct 14:21:00 GMT
 
 
* KGHM sees Chilean mine's output at 30 pct of group copper production by 2018
* Sees foreign output contribution reaching 40 pct by 2020
* Upholds Sierra Gorda's planned launch in Q2 2014

(Adds Sierra Gorda output contribution, adds more comments)

By Adrian Krajewski

WARSAW, Oct 21 (Reuters) - KGHM expects its new Chilean copper mine to account for one third of its output of the metal by 2018, a senior executive said on Monday as the group seeks increasingly to turn itself from a Poland-based company into a global metals player.

State-controlled KGHM is already the world's biggest silver producer and is second biggest in copper in Europe.

"Around 80 percent of the group's value is now Polish assets," KGHM's deputy chief executive Jaroslaw Romanowski told a news conference. "These positions will change in the coming years, especially after the launch of Sierra Gorda."

He was referring to a Chilean mine which is one of the world's largest copper projects and which the group bought last year. The deal gave KGHM the world's fourth largest copper deposits.

"We see it (Sierra Gorda) producing 217,000 tonnes of copper in 2018, which is 30 percent of the group's output," he said.

The mine's annual output is expected ultimately to reach 40 percent of KGHM's planned 2013 copper production of 548,000 tonnes and start producing in the second quarter of 2014.

KGHM wants it to reach an output of 110,000 tonnes of copper by the end of next year. It will also produce 11,000 tonnes of molybdenum a year, or 10 percent of the metal's global supply.

He said that eventually the group's output would be split 40-60 between foreign and Polish assets, respectively.

Sierra Gorda will cost $3.9 billion, over a third more than initially expected.

The project, 55 percent controlled by KGHM, was part of its C$3 billion purchase last year of Canada's Quadra FNX, now named KGHM International. KGHM splits costs with its Japanese partner Sumitomo <5713.T>. [ID:nL6N0BT1O0]

KGHM wants to scale up copper production by over 40 percent to 1 million tonnes annually by the end of the decade as its overseas assets gradually kick in. [ID:nL5N0BE8VI]


(Editing by Patrick Lannin)

((adrian.krajewski@thomsonreuters.com)(+48 22 653 97 09)(Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net))

 
 

Key Words:  POLAND KGHM 

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Polish KGHM has high hopes for Chilean copper mine

Company News 04:21:48PM Oct 22, 2013 Source:SMM

Mon, 21 Oct 14:21:00 GMT
 
 
* KGHM sees Chilean mine's output at 30 pct of group copper production by 2018
* Sees foreign output contribution reaching 40 pct by 2020
* Upholds Sierra Gorda's planned launch in Q2 2014

(Adds Sierra Gorda output contribution, adds more comments)

By Adrian Krajewski

WARSAW, Oct 21 (Reuters) - KGHM expects its new Chilean copper mine to account for one third of its output of the metal by 2018, a senior executive said on Monday as the group seeks increasingly to turn itself from a Poland-based company into a global metals player.

State-controlled KGHM is already the world's biggest silver producer and is second biggest in copper in Europe.

"Around 80 percent of the group's value is now Polish assets," KGHM's deputy chief executive Jaroslaw Romanowski told a news conference. "These positions will change in the coming years, especially after the launch of Sierra Gorda."

He was referring to a Chilean mine which is one of the world's largest copper projects and which the group bought last year. The deal gave KGHM the world's fourth largest copper deposits.

"We see it (Sierra Gorda) producing 217,000 tonnes of copper in 2018, which is 30 percent of the group's output," he said.

The mine's annual output is expected ultimately to reach 40 percent of KGHM's planned 2013 copper production of 548,000 tonnes and start producing in the second quarter of 2014.

KGHM wants it to reach an output of 110,000 tonnes of copper by the end of next year. It will also produce 11,000 tonnes of molybdenum a year, or 10 percent of the metal's global supply.

He said that eventually the group's output would be split 40-60 between foreign and Polish assets, respectively.

Sierra Gorda will cost $3.9 billion, over a third more than initially expected.

The project, 55 percent controlled by KGHM, was part of its C$3 billion purchase last year of Canada's Quadra FNX, now named KGHM International. KGHM splits costs with its Japanese partner Sumitomo <5713.T>. [ID:nL6N0BT1O0]

KGHM wants to scale up copper production by over 40 percent to 1 million tonnes annually by the end of the decade as its overseas assets gradually kick in. [ID:nL5N0BE8VI]


(Editing by Patrick Lannin)

((adrian.krajewski@thomsonreuters.com)(+48 22 653 97 09)(Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net))

 
 

Key Words:  POLAND KGHM