Fluor Advances Sierra Gorda Fourth Grinding Line
Fluor has received full notice to proceed on its EPCM contract for the fourth processing line at Chile's Sierra Gorda copper-molybdenum mine.
Updated on Nov. 5, 2026 in Construction
Fluor Corporation received full notice to proceed under its engineering, procurement and construction management contract with Sierra Gorda Sociedad Contractual Minera. The brownfield project adds a fourth process line to the open-pit copper-molybdenum concentrator located about 60 km south of Calama in Chile's Antofagasta Region.
Why it matters
The expansion would raise ore-processing capacity from roughly 130,000 to 165,000 tonnes per day, signaling continued investment in copper output. Copper supply growth is closely watched by industries that depend on the metal for electrical and industrial uses.
Ore-processing capacity is projected to climb from about 130,000 to 165,000 tonnes per day, with annual payable output expected to reach roughly 195,000 tonnes of copper, 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver. The increase is projected at approximately 30% in copper equivalent production relative to current levels, though the project's total cost was not disclosed.
The players
Fluor Corporation
Fluor is a global engineering and construction firm that acts as the EPCM contractor for the Sierra Gorda expansion.
KGHM Polska Miedź S.A
KGHM is a Polish copper mining and smelting company that is a joint venture partner in the Sierra Gorda mine.
South32
South32 is a diversified mining and metals company headquartered in Perth, Australia, and a joint venture partner in the Sierra Gorda mine.
The details
The expansion adds a new primary crusher, a high-pressure grinding roll crusher, fine ore grinding, flotation circuits and support facilities to the existing concentrator. The joint venture partners, including KGHM Polska Miedź S.A and South32, approved execution of the fourth grinding line earlier this year.
Timeline
Earlier in 2026: Sierra Gorda joint venture partners approve execution of the fourth grinding line project.
November 5, 2026: Fluor receives full notice to proceed under its EPCM contract.
2027: Construction activities are expected to begin.
Industry Context
The fourth grinding line extends the staged, brownfield capacity growth Sierra Gorda has pursued at its existing concentrator rather than developing a new site. Adding processing lines to an established operation is a common route for copper producers seeking output gains without the longer timelines of greenfield development.
For copper-dependent manufacturers and buyers, the expansion points to added future supply from one of Chile's large copper operations. The project's timing means any effect on prices or availability would unfold over several years rather than immediately.
The takeaway
Staged expansions at existing mines can add meaningful output while avoiding the longer timelines of new sites. Readers tracking copper supply should watch the 2027 construction start and subsequent production ramp-up.
What happens next
Construction activities are expected to start in 2027, when the fourth grinding line moves from contracting into the build phase.
Further reading
Explore more Construction coverage for context on major infrastructure and mining projects.
