Southern Copper eyes $10.2B Mexico investment pending talks

According to me-metals cited from mining.com, The company, in its second-quarter earnings report this week, said the negotiations aim to secure permits and licences that were stalled under the previous government.

Southern Copper’s subsidiary, Minera México, plans to invest over $600 million by the end of 2025 in both open-pit and underground operations. About half of that will go toward modernizing infrastructure to ensure long-term viability. The rest will fund improvements in water use and tailings management, as well as initiatives focused on operational efficiency and growth. 

The company highlighted several Mexican projects in the pipeline, including Angangueo, Chalchihuites and the Empalme smelter. It noted that these developments could strengthen its position as a fully integrated copper producer.

Additional projects include the El Arco copper deposit in Baja California and the El Pilar greenfield copper project in Sonora, a region also known for gold, silver and lithium assets.

According to the Mexican mining chamber Camimex, there were 116 pending environmental approvals with Semarnat and 107 awaiting clearance from the water authority Conagua as of late 2024. These delays are holding up an estimated $6.9 billion in investments and the creation of 50,000 jobs.

$1.8B Tía María mine

in Peru, Southern Copper is targeting 2027 to begin production at its long-delayed Tía María copper mine in the Arequipa region’s Islay province. The company recently increased the project’s spending total to $1.8 billion, up from the previously planned $1.4 billion. 

At current copper prices, Southern Copper expects Tía María to generate $18.2 billion in exports and contribute $3.8 billion in taxes and royalties over its first 20 years. Southern Copper reported it has already created 1,376 jobs, including 802 filled by local workers. The company aims to hire most of the 3,500 workers needed during construction from Islay. Once operational, the mine will generate 764 direct and 5,900 indirect jobs.

Construction progress has reached 90% on access roads and platforms. The company has also started building a temporary camp, begun mass earthworks, and installed 59 kilometres of fencing around the site.

Tía María has faced years of delays due to strong local opposition over environmental concerns, with protests between 2011 and 2015 leaving six people dead. Though the Peruvian government approved the project in 2019, it remained stalled until development resumed in 2024 following improved local conditions.

Southern Copper said its Peruvian projects, either under construction or in engineering phases, could represent over $10.3 billion in investment over the next decade.

Despite global economic uncertainty and the potential fallout from the US-China trade dispute, the company remains optimistic.

Chief financial officer Raúl Jacob told analysts Wednesday, “We maintain a positive long-term outlook for copper.”

source: mining.com