KGHM International produces copper at each of its five operating mines. The copper is produced in various product formats, including copper cathode, copper concentrate (containing also gold and silver by-products) and poly-metallic ore. In the future, copper concentrate is also expected to be produced at each of our projects including Sierra Gorda, Ajax and Victoria.
Operations
Robinson Mine: Copper Concentrate
The Robinson mine, located near Ely, Nevada, produces copper concentrates with by-product gold and silver contained in the concentrates. The concentrates are transported by truck and train to the port of Vancouver, Washington, where they are exported for shipment primarily to Asia. In 2011, Robinson produced 43,000 mt of copper contained in approximately 220,000 dmt of copper concentrates. Robinson also produces a small amount of molybdenum concentrates.
Franke Mine: Copper Cathode
The Franke mine is located approximately 235 km south of the city of Antofagasta and approximately 270 km north of the town Copiapó, in Chile’s Region II. Franke is an SX/EW operation producing LME (non-registered) Grade A quality copper cathode. Franke copper cathodes are transported by truck to the ports of Mejillones and Antofagasta where they are shipped by ocean vessel to various destinations around the world. In 2011, Franke produced 15,000 mt of copper cathode.
Carlota Mine: Copper Cathode
Carlota is an SX/EW operation located near the town of Miami, AZ, approximately 120km west of Phoenix. Copper cathodes are sold under annual contracts for delivery within North America. In 2011, Carlota produced 11,000 mt of cathode. The mine is operating under a ‘Mining for Closure” plan, though cathode will continue to be produced from the operation for the next few years.
Sudbury Operations: Copper and Nickel Ore
KGHM International’s two Sudbury mines (Morrison and McCreedy West) each produce ore that is shipped as unprocessed raw material to Vale's Clarabelle Mill and Xstrata’s Strathcona Mill by truck and rail. The mines in 2011 combined to produce 30,000 mt of contained copper, 5000 mt of contained Ni and 73,000 ounces of gold, platinum and palladium.
Projects
Sierra Gorda Project: Copper Concentrate and Copper Cathode
The Sierra Gorda Project is located in the Atacama Desert in Chile’s Region II, and is currently in construction. Per the 2011 Feasibility Study, the project is expected to produce an average of 219,000 mt of copper-in-concentrates annually over the current 20-year mine life.
Concentrates will be transported by rail to the port of Antofagasta for export to smelters around the world. Based on metallurgical work to-date, Sierra Gorda copper concentrate is expected to contain very low levels of impurities such as arsenic, lead and mercury. The copper concentrate is also expected to have by-product gold and silver.
Approximately 200 Mt of oxide material at Sierra Gorda will be stockpiled for potential processing at a later stage. The possibility of processing oxide resources, using heap leach and SX-EW processing, was included in the EIA permits. KGHM International is currently conducting a pre-feasibility study of the oxide potential at Sierra Gorda.
Ajax Project: Copper Concentrate
The Ajax Project is located near Kamloops, BC in Canada. Based on Feasibility Study completed in 2010, average annual production is estimated at about 50,000 mt of copper and about 100,000 ounces of gold in concentrate. The concentrate would likely be transported to the port of Vancouver, BC for shipment to copper smelters in Asia. The project is currently in the permitting stage.
Victoria Project: Poly-Metallic Ore
The Victoria Project is a development project located near Sudbury, ON. The deposit is poly-metallic with high grade copper, nickel and precious metals (including platinum palladium and gold). KGHM International continues to advance the project through detailed engineering. Future production from Victoria is expected to be sold to Vale in accordance with the Vale Off-Take Agreement.
