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Sierra Gorda Mine Signs Construction Contract with SalfaCorp

Deal Announcement
17 July 2012
Santiago, Chile, July 17, 2012 - Sierra Gorda SCM and Salfa Montajes S.A. -- an affiliate of Chilean based SalfaCorp Engineering and Construction Business Unit -- closed an agreement for the construction and installation of wet and dry areas of the Sierra Gorda mine project processing plant. Partner Antonio Ortuzar Jr. and Associate Javier Barroilhet from the Baker & McKenzie Santiago office advised Sierra Gorda SCM in the drafting and negotiating of the contract. Salfa Montajes was advised by its internal counsel.  

The project, which involves the extraction of copper and molybdenum concentrates and copper cathodes, is located in the town of Sierra Gorda, in the II Region of Antofagasta. Overall investment in the project is estimated at about USD3 billion.

The contract awarded to Salfa Montajes exceeds USD350 million, and will require the workforce equivalent of over 10 million hours in various specialties throughout construction. The construction of the mining project will begin during the second half of 2012. In order to achieve their objectives, Salfa Montajes and Sierra Gorda S.C.M. have designed a processing plant that will have a production capacity of 190 thousand tons of copper per day (ton / d) on average, with a maximum of 210 thousand  ton / d. At an early stage, the Sierra Gorda mine will produce 483 million pounds of copper sulfides, 25 million pounds of molybdenum and 64 thousand ounces of gold annually over an estimated period of 21 years.
For further information, please contact:
+562 2367 7023
Senior Manager, Communications, Latin America
+ 1 305 789 8927
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