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KGHM Copper |
Growth Driven by Robinson Mine and Sierra Gorda
Polish mining giant KGHM increased its payable copper output by 3% in 2024, totaling 730,000 tonnes, thanks to stronger production outside Europe. The growth was primarily driven by the Robinson mine in the United States and the Sierra Gorda mine in Chile, both delivering year-on-year improvements. KGHM International, which manages these assets along with operations in Canada, posted a 52% surge in output, reaching 60,500 tonnes.
Meanwhile, Sierra Gorda, 55% owned by KGHM, recorded a 2% increase in copper production, delivering 80,500 tonnes of payable copper in 2024. This marked a strong year for KGHM’s international portfolio, even as domestic operations slightly contracted.
European Output Contracts, but Concentrate Production Improves
While overall copper output increased, European production fell by 0.5%, totaling 589,000 tonnes. KGHM’s Polish operations, which form the core of its European business, experienced minor setbacks in output volumes. However, the company achieved a 1.2% increase in copper in concentrate, totaling 400,100 tonnes, indicating steady upstream performance.
Despite this, KGHM’s molybdenum output declined by 6% year-on-year, reaching 3.4 million pounds. The drop was due to lower metal content and recovery at the Sierra Gorda mine, a key site for molybdenum production.
Strategic Focus on Global Expansion
KGHM's international growth strategy is paying dividends, especially amid fluctuating European output. By leveraging higher-yield assets in the Americas, the company has managed to maintain its upward momentum. This diversification provides a buffer against regional challenges while supporting the firm’s long-term resource strategy.
The Metalnomist Commentary
KGHM's copper growth underscores the importance of global diversification in the mining sector. As Europe grapples with production limits and resource constraints, overseas assets will remain vital for future growth and resilience.
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