Poland's KGHM says launched production at key Chilean mine

Thu Jul 31, 2014 2:06am EDT
 
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WARSAW, July 31 (Reuters) - Europe's No.2 copper producer KGHM launched production at its Sierra Gorda mine in Chile, one of the world's largest copper projects, the Polish group said on Thursday.

"Following the ramp-up period, which will be completed in early 2015, the Sierra Gorda mine will produce approximately 120 thousand tonnes of copper, 50 million pounds of molybdenum and 60 thousand ounces of gold annually in the first years of operations," KGHM said in a statement.

KGHM acquired the project in 2012 as part of a C$3 billion ($2.8 billion) purchase of Canada's Quadra FNX, now named KGHM International. That deal allowed it to book the world's fourth-largest copper deposits.

The state-controlled miner controls 55 percent of the Chilean project, and Japanese partner Sumitomo holds the rest. ($1 = 1.0901 Canadian Dollars) (Reporting by Adrian Krajewski; Editing by Marcin Goclowski)