KGHM International Ltd. Sierra Gorda Copper-Molybdenum Mine Project

Client: KGHM International Ltd.

Location: Atacama Desert, Chile

Map showing the location of KGHM International Ltd. Sierra Gorda Copper-Molybdenum Mine Project

Executive Summary

Fluor was awarded a contract in 2011 to perform engineering, procurement and construction management services for the Sierra Gorda Mine processing plant.

The processing plant consists of: primary, secondary and tertiary crushing with high-pressure grinding rolls (HPGRs); ball milling and conventional flotation to produce a bulk copper-molybdenum concentrate; train transport of bulk copper concentrate to the Port of Mejillones for loading into ships; and train transport of bagged molybdenum concentrate to the port for further transport to a toll roasting facility or end user.

We conducted a feasibility study for KGHM International Ltd. open pit operation prior to the award. The feasibility study focused on the principal sulfide ore, which is processed at an initial daily throughput of 110,000 tons per day (tpd) with provision for potential expansion to 190,000 tpd.

The project facilities included those for open pit mine development and preproduction stripping. The mine is 1,700 meters above sea level.

Client's Challenge

On February 20, 2012, Quadra FNX Mining Ltd. security holders approved the plan of arrangement with KGHM Polska Miedź S.A. in which a subsidiary of KGHM was to acquire all of the issued and outstanding securities of Quadra FNX.

The plan of arrangement closed on March 5, 2012 and Quadra FNX now operates under the name KGHM International Ltd., a subsidiary of KGHM Polska Miedź S.A., and focuses on growth in copper and other metals.

KGHM International operates mines in Canada, the United States and Chile and constructed the Sierra Gorda copper-molybdenum project in Chile and actively progressing with the Victoria project, the newest discovery in Sudbury, Ontario, Canada.

Conclusion

The Sierra Gorda project was carried out through our Santiago office. After conducting a feasibility study, we were awarded engineering, procurement and construction management of the processing facilities at the site.

At peak, there were 6,500 construction workers on site.