WARSAW, March 17 Poland's KGHM, one of
the world's biggest copper and silver producers, said on Friday
it had put on hold the second phase of expansion of its Sierra
Gorda project in Chile.
* State-run KGHM gained control over Sierra Gorda in 2011
when it bought Canada's Quadra FNX, for C$2.87 billion ($2.14
billion) in the largest-ever foreign acquisition by a Polish
* But Sierra Gorda, which KGHM co-owns with Japan's Sumitomo
Metal Mining Co Ltd, has struggled to master complex
* Asset impairment charges related to Sierra Gorda sent
KGHM's financial results into the red in 2015 and 2016.
* "We have put Sierra Gorda phase two on hold due to
changing conditions," CEO Radoslaw Domagalski-Labedzki said.
* "We believe in the Sierra Gorda project, we want to stay
on it. I'm an optimist when it comes to the effectiveness of the
project," he said.
(Reporting by Agnieszka Barteczko; editing by Lidia Kelly and