Southern Copper, a New York-listed miner, says its Peru projects could top US$10.3 billion over the next decade. Three mines and one expansion would add copper supply.
Southern Copper, a New York-listed miner, says its Peru projects could top US$10.3 billion over the next decade. Copper goes into power grids, electric vehicles and data centres, so new Peruvian supply matters to US industry.
The company gave the figure in its third-quarter results on Tuesday, 20 October. It is 88.9% owned by Mexico’s Grupo México, a mining and rail group.
What the Plan Includes
Tía María, a copper mine in Peru’s Arequipa region, was 49.6% complete on 30 September. The company has spent US$884.3 million and committed about US$1.1 billion.
It expects Tía María to start operating in the first half of 2028. The mine should produce 120,000 tonnes of copper a year in its early years.
Los Chancas, a planned open-pit mine in the Apurímac region, would cost about US$2.6 billion. The company expects operations to begin in 2031, with 130,000 tonnes of copper a year.
Michiquillay, in the Cajamarca region, would cost about US$2.5 billion and produce 225,000 tonnes of copper a year. The company expects start-up by 2032.
A company freight train winds along a desert hillside on the Ilo to Toquepala line in southern Peru. The photo is undated and does not show the new projects. Photo: Kabelleger / David Gubler / Wikimedia Commons (CC BY-SA 4.0)The company also lists a US$680 million expansion of its Cuajone mine in Moquegua. It would add about 55,000 tonnes of copper a year, plus 1,400 tonnes of molybdenum, a metal that hardens steel.
Risks to the Schedule
The company says illegal miners have threatened the Los Chancas area. It says it is working to regain control of the project site.
These dates are company targets, not government approvals. Schedules for mines of this size can change.
Southern Copper earned US$1.80 billion in the third quarter, up 62.7% from a year earlier. Net sales hit a quarterly record of US$4.70 billion, up 39.1%, and capital spending reached US$515.8 million.
What It Means for You
US investors in Southern Copper shares, which trade in New York as SCCO, should read US$10.3 billion as a decade-long ambition. It is not a spending commitment for next year.
US makers of wiring, batteries and grid equipment would gain, but most of these mines would not produce before 2028. Mined copper in the third quarter was 232,396 tonnes, down 1.1% from a year earlier.
Related Rio Times reports are Southern Copper to Spend US$8.2 Billion in Peru and Southern Copper Plans US$471 Million in Peru