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Southern Copper Corporation: A Comprehensive Corporate Profile

Quick Facts / Company Snapshot

  • Net Sales (2024): $11,433.4 million
  • Net Income (2024): $3,376.8 million
  • Operating Income (2024): $5,554.7 million
  • Total Assets (2024): $18,713.5 million
  • Total Equity (2024): $9,238.1 million
  • Total Debt (2024): $6,258.3 million
  • Copper Production (2024): 973,851 tonnes
  • Zinc Production (2024): 130,011 tonnes
  • Silver Production (2024): 20,983,000 ounces
  • Molybdenum Production (2024): 28,997 tonnes
  • Operating Cash Cost per Pound (Net of By-products): $0.89
  • Capital Investments (2024): $1,027.3 million
  • 2025 Capital Investment Program: $1,598.0 million
  • Copper Reserves (Dec 31, 2024): 112,668 million pounds
  • Total Employees (Dec 31, 2024): 16,133
  • Primary Shareholder: Americas Mining Corporation (88.9%)
  • Stock Exchange Listing: NYSE and Lima Stock Exchange (Ticker: SCCO)
  • Incorporation Date: December 12, 1952
  • Headquarters: Phoenix, Arizona, USA
  • 2032 Production Target: 1.5 million tonnes of copper

Company Overview

Southern Copper Corporation (SCC) stands as one of the largest integrated copper producers in the world. The company engages in the extraction, milling, concentration, smelting, treatment, and preparation for market of various minerals. While copper is the primary focus, the production portfolio extends to molybdenum, zinc, silver, lead, and gold. The company manages the entire production chain, from ore mining to the generation of refined copper and other by-products, utilizing a high level of vertical integration that includes managing transport and logistics functions with its own facilities and equipment.

The operations are centered in Peru and Mexico, with exploration activities extending into Chile, Ecuador, and Argentina. This operational footprint positions SCC as one of the most significant mining entities in both Peru and Mexico. The company utilizes modern and state-of-the-art mining and processing methods, including global positioning systems and computerized mining operations, to maximize efficiency and output.

SCC was incorporated in Delaware in 1952 and has been conducting copper mining operations since 1960. Since 1996, its common stock has been listed on both the New York and Lima Stock Exchanges. The company is indirectly part of Grupo Mexico S.A.B. de C.V., which owns 100% of Americas Mining Corporation (AMC), the entity holding 88.9% of SCC shares.

Key Operational Statistics:

  • Copper Mineral Reserves: 112,668 million pounds (calculated at a copper price of $3.30 per pound).
  • Global Position: Believed to hold the world’s largest position of copper reserves.
  • 2024 Copper Production Growth: 6.9% year-over-year increase.

Business Segments

Southern Copper Corporation operates through a highly integrated business model comprising mining, smelting, and refining activities. While the company reports consolidated financial figures, its operations are distinctly categorized by the type of processing and the geographic location of its assets. The primary business segments revolve around the production of metal concentrates and the subsequent refining into higher-value metal products.

Mining and Concentration Operations

This segment involves the extraction of ore from open-pit and underground mines and its processing into concentrates. The mining operations are the foundational source of the company’s revenue, driving the production of copper, molybdenum, zinc, and silver.

  • Operational Scope: Includes drilling, blasting, loading, and hauling of ore to concentrators where it is milled and treated through flotation circuits to produce concentrates.
  • Key Facilities: Open-pit mines in Toquepala and Cuajone (Peru), and Buenavista and La Caridad (Mexico). Underground mines including Santa Barbara, Santa Eulalia, San Martin, Charcas, and Taxco (Mexico).
  • Performance Highlight: Mined material in 2024 reached 835,637 thousand tonnes.

Smelting and Refining Operations

Following concentration, materials are processed in smelters to produce anode copper and then refined into copper cathodes. This segment also includes the production of refined silver, gold, and other by-products.

  • Operational Scope: Smelting concentrates to produce blister and anode copper; refining anodes to produce cathodes; and processing slimes to recover precious metals.
  • Key Facilities: Ilo Metallurgical Complex (Peru) and La Caridad Metallurgical Complex (Mexico).
  • Production Volume: Smelter/refineries produced 611,260 tonnes of copper and 11,999 thousand ounces of silver in 2024.

Solvent Extraction and Electrowinning (SX/EW)

This segment represents a hydrometallurgical process used to produce copper cathodes directly from oxidized ore or low-grade sulfide ore, bypassing the traditional smelting process.

  • Operational Scope: Leaching of ore followed by solvent extraction and electrowinning to produce high-purity copper cathodes.
  • Technology: Environmentally friendly technology used extensively at Buenavista and Toquepala.
  • Contribution: Copper SX/EW production totaled 131,375 tonnes in 2024.

History and Evolution

The company was originally organized on December 12, 1952, under the laws of the State of Delaware, USA, with the name Southern Peru Copper Corporation (SPCC). The company established a branch in Peru in 1954 to carry out mining activities, which was formalized under a public instrument certified in Lima.

Key Historical Milestones:

  • 1952: Incorporation as Southern Peru Copper Corporation.
  • 1954: Establishment of the Peru Branch.
  • 1960: Commencement of copper mining operations.
  • 1995: Capital increase formalized for the Peru Branch and incorporation of “Southern Peru Copper Holding Company” in Delaware. This year also marked the exchange of “Labor Shares” (now Investment Shares) for Common Shares.
  • 1996: Common stock listed on the New York and Lima Stock Exchanges. Signing of a tax stability contract with the Peruvian Government.
  • 1998: Merger between Southern Peru Copper Corporation and Southern Peru Limited, with the former absorbing the latter.
  • 1999: Grupo Mexico S.A.B. de C.V. acquired ASARCO Incorporated, becoming the controlling shareholder of SPCC. This marked a significant change in the economic group, making SPCC a subsidiary of Grupo Mexico via Americas Mining Corporation (AMC).
  • 2005: Acquisition of Minera Mexico S.A. de C.V. approved by shareholders. Following this acquisition, the corporate name was changed to Southern Copper Corporation (SCC) on October 11, 2005, to reflect the expanded operational reach beyond Peru into Mexico and other South American countries.
  • 2010: Ticker symbol changed from PCU to SCCO on both NYSE and BVL.
  • 2019: Expansion of the Buenavista Zinc Concentrator and issuance of $1 billion in Senior Notes.
  • 2024: Certified responsible production at Buenavista del Cobre and three mining units in Peru with The Copper Mark, The Zinc Mark, and The Molybdenum Mark.

The acquisition of Minera Mexico in 2005 was a transformative event, issuing 67,207,640 shares in exchange for MM shares, which increased AMC’s share in SCC to approximately 75.1% at the time. Today, the company continues to operate under the abbreviated name “Southern Peru” for its Peruvian branch to maintain commercial continuity and client relationships.

Products and Services

SCC produces a diverse range of metal products, with copper being the dominant revenue driver. The company also produces significant by-products that contribute to lowering the overall cash cost of operations.

1. Copper

Copper is the primary product, sold in the form of concentrates and cathodes. It is the core of the company’s revenue and strategic focus.

  • Total Production (2024): 973,851 tonnes
  • Copper in Concentrates: 842,476 tonnes
  • Copper SX/EW: 131,375 tonnes
  • Sales Volume (2024): 2,069.1 million pounds
  • Operational Insight: Production increased by 6.9% in 2024, driven by growth in both Peruvian (+10.7%) and Mexican (+4.3%) operations.

2. Zinc

Zinc is a key by-product produced primarily at the Buenavista zinc concentrator and underground mines.

  • Production in Concentrates (2024): 130,011 tonnes
  • Smelter/Refinery Production: 98,763 tonnes
  • Sales Volume (2024): 317.8 million pounds
  • Year-Over-Year Growth: Mined zinc production rose by a massive 98.5% in 2024 due to an additional 64,297 tonnes generated at the Buenavista zinc concentrator.

3. Molybdenum

Molybdenum is produced as a concentrate and is a significant by-product that offsets copper production costs.

  • Production in Concentrates (2024): 28,997 tonnes
  • Sales Volume (2024): 64.0 million pounds
  • Year-Over-Year Growth: Production increased by 8.1% compared to 2023, due to higher production at all mines except La Caridad.

4. Silver

Silver is recovered during the copper refining process and from mine production.

  • Production in Concentrates (2024): 20,983,000 ounces
  • Refined Production: 11,999,000 ounces
  • Sales Volume (2024): 20.8 million ounces
  • Year-Over-Year Growth: Mined silver production increased by 14% in 2024, primarily driven by higher production at all mines.

5. Other Products

The company also produces Lead, Gold, and Sulfuric Acid.

  • Lead Production in Concentrates (2024): 21,087 tonnes
  • Gold Production (Underground Mines 2024): 6,973 ounces

Brand Portfolio

Southern Copper Corporation’s “brands” are effectively its major mining operation units, each recognized globally for their scale and output capacity.

1. Buenavista (Mexico)

Formerly known as Cananea, this open-pit copper mine is located at one of the world’s largest copper ore deposits.

  • Mined Material (2024): 335,904 thousand tonnes
  • Copper in Concentrates (2024): 348,959 tonnes
  • Key Features: Houses two concentrators and significant SX/EW facilities.

2. Toquepala (Peru)

Located high in the Andes Mountains, Toquepala is a historic open-pit mine utilizing advanced milling and flotation technologies.

  • Mined Material (2024): 203,995 thousand tonnes
  • Copper in Concentrates (2024): 225,177 tonnes
  • Key Features: Includes a concentrator with a throughput capacity of 120,000 MT per day and an SX/EW plant.

3. Cuajone (Peru)

Another major Andean open-pit mine operating in tandem with Toquepala.

  • Mined Material (2024): 146,690 thousand tonnes
  • Copper in Concentrates (2024): 164,860 tonnes
  • Key Features: Uses the “Botiflaca Concentrator” with a 90,000 MT per day throughput capacity.

4. La Caridad (Mexico)

An open-pit copper mine complex that includes a concentrator, smelter, refinery, and rod plant.

  • Mined Material (2024): 144,615 thousand tonnes
  • Copper in Concentrates (2024): 93,725 tonnes
  • Key Features: Highly integrated metallurgic complex producing copper cathodes and rods.

5. IMMSA Unit (Mexico)

This unit operates five underground mines producing zinc, lead, copper, silver, and gold.

  • Zinc in Concentrates (2024): 65,714 tonnes
  • Operations: Santa Barbara, Santa Eulalia, San Martin, Charcas, and Taxco.

Geographical Presence

SCC’s operations are strictly divided between Mexico and Peru, with corporate headquarters in the United States.

Mexico

Operations in Mexico are conducted through the subsidiary Minera Mexico S.A. de C.V. and its units: Mexicana de Cobre (La Caridad), Buenavista del Cobre, and Industrial Minera Mexico (IMMSA).

  • Copper Mineral Reserves: 46,881 million pounds
  • Key Locations: Sonora (Buenavista, La Caridad), San Luis Potosi (Charcas, Zinc Refinery), Zacatecas (San Martin), Chihuahua (Santa Barbara, Santa Eulalia), Guerrero (Taxco).
  • Environmental Investment (2024): $173.0 million
  • Employees (2024): 10,988

Peru

Peruvian operations include the Toquepala and Cuajone mines and the Ilo Metallurgical Complex.

  • Copper Mineral Reserves: 46,513 million pounds
  • Key Locations: Tacna (Toquepala), Moquegua (Cuajone, Ilo).
  • Environmental Investment (2024): $4.4 million
  • Employees (2024): 5,120

Exploration Regions

Beyond the active production zones, SCC conducts exploration activities in:

  • Chile (7 employees)
  • Ecuador (1 employee)
  • Argentina (8 employees)

Corporate Offices

  • United States: Phoenix, Arizona (Headquarters)
  • Mexico: Mexico City
  • Peru: Lima

Financial Performance Analysis

The financial performance of SCC in 2024 demonstrates robust growth driven by increased production volumes and favorable metal prices. The company achieved record-breaking sales and significant improvements in net income.

Consolidated Performance

  • Net Sales Growth: Increased by 15.5% ($1,537.6 million) to reach a record $11,433.4 million in 2024.
  • Net Income Growth: Rose by 39.2% ($951.6 million) to $3,376.8 million.
  • Net Income Margin: Improved to 29.5% in 2024, up from 24.5% in 2023.
  • Cost Efficiency: Operating cash cost per pound of copper (net of by-products) decreased by 13.9% to $0.89.

Multi-Year Trend (2020–2024)

  • Net Sales: Grew from $7,984.9 million in 2020 to $11,433.4 million in 2024.
  • Net Earnings: Increased from $1,570.4 million in 2020 to $3,376.8 million in 2024.
  • Dividends Paid: Varied from $1.50 per share in 2020 to $2.10 per share in 2024.
  • Operating Cash Cost: Fluctuated from $0.78 in 2022 to $0.89 in 2024, reflecting strict cost control measures.

Profit and Loss Analysis

SCC’s 2024 income statement reflects strong operational efficiency and market favorability.

  • Net Sales: $11,433.4 million. The increase was driven by higher sales volumes for copper (+5.5%), molybdenum (+7.9%), zinc (+44.6%), and silver (+15.7%).
  • Operating Costs and Expenses: $5,878.7 million.
  • Operating Income: $5,554.7 million, a significant increase from $4,192.3 million in 2023.
  • Net Income Attributable to SCC: $3,376.8 million.
  • Earnings Per Share (Basic and Diluted): $4.34, up from $3.14 in 2023.
  • Depreciation, Amortization, and Depletion: $845.9 million.
  • Tax Provision: The company provisioned $86.9 million for Special Mining Tax in Peru.

Key Ratios:

  • P/E Ratio: 21.00 (based on 2024 data).
  • Net Income Margin: 29.5%.

Balance Sheet Analysis

The company maintains a solid financial position with a strong asset base and manageable debt levels.

  • Total Assets: $18,713.5 million, an increase from $16,725.3 million in 2023.
  • Cash and Cash Equivalents: $3,258.1 million, significantly higher than the $1,151.5 million held in 2023.
  • Total Debt: $6,258.3 million, remaining relatively stable compared to $6,254.6 million in 2023.
  • Total Equity: $9,238.1 million, reflecting retained earnings and shareholder value.
  • Net Debt: Defined as total debt minus cash and short-term investments. The net debt as a percentage of Net Capitalization was 23.0%, a sharp improvement from 37.6% in 2023.
  • Current Ratio: Current assets to current liabilities ratio stood at 2.75.

Cash Flow Analysis

SCC generates robust cash flows from its operating activities, supporting its aggressive capital expenditure programs and shareholder returns.

  • Cash Provided by Operating Activities: $4,421.7 million in 2024, up from $3,573.1 million in 2023.
  • Capital Investments (Investing): $1,027.3 million used for capex.
  • Dividends Paid (Financing): $1,637.2 million paid to shareholders in 2024.
  • Free Cash Flow Insight: The company funded its $1 billion+ capital program and $1.6 billion dividend payout while still increasing its cash position by over $2 billion, demonstrating exceptional liquidity generation.

Board of Directors and Leadership Team

The governance structure is led by experienced executives with deep ties to the parent company, Grupo Mexico.

Board of Directors

  • German Larrea Mota-Velasco (Chairman): Chairman since 1999. Also Chairman/CEO of Grupo Mexico and Grupo Ferroviario Mexicano.
  • Oscar Gonzalez Rocha (Director, President & CEO): Associated with Mexican operations since 1976. President & CEO since 2004. Copper Man of the Year 2015.
  • Leonardo Contreras Lerdo de Tejada (Director): General Director of Americas Mining Corporation. Expertise in private equity and investment banking.
  • Vicente Ariztegui Andreve (Independent Director): Managing Director of Aonia Holding. Chairman of the Sustainability Committee.
  • Javier Arrigunaga Gomez del Campo (Independent Director): Managing Director of Xokan S.C. and Chairman of Grupo Aeromexico. Joined April 2024.
  • Enrique Castillo Sanchez Mejorada (Independent Director): Senior Partner of Ventura Capital Privado.
  • Luis Miguel Palomino Bonilla (Special Independent Director): President of the Peruvian Economics Institute. Member of the Audit Committee.
  • Gilberto Perezalonso Cifuentes (Special Independent Director): Former CEO of Aeromexico and Volaris.
  • Carlos Ruiz Sacristan (Special Independent Director): Former Secretary of Communications and Transportation of Mexico.
  • Jose Pedro Valenzuela Rionda (Independent Director): Managing Partner of AB Capita, S.C. Joined April 2024.

Executive Officers

  • Oscar Gonzalez Rocha: President and CEO
  • Raul Jacob Ruisanchez: Vice President, Finance Treasurer and CFO
  • Jorge Lazalde Psihas: Secretary
  • Andres Ferrero Ghislieri: General Counsel
  • Lina Vingerhoets Vilca: Comptroller
  • Raul Vaca Castro: General Auditor

Subsidiaries, Associates, Joint Ventures

SCC operates through a network of subsidiaries that manage specific geographic or operational units.

1. Americas Mining Corporation (“AMC”)

  • Role: Holding company.
  • Ownership: 88.9% of SCC shares.
  • Location: USA.

2. Minera Mexico, S.A. de C.V.

  • Ownership: 99.96%.
  • Role: Principal subsidiary for Mexican operations.
  • Contribution: Includes Mexicana de Cobre, Buenavista del Cobre, and Industrial Minera Mexico.

3. Southern Peru Copper Corporation (Branch)

  • Ownership: 99.29% (Includes 82.69% common shares and 16.60% investment shares).
  • Role: Branch established in 1954 to carry out mining in Peru.

4. Other Subsidiaries

  • Industrial Minera Mexico, S.A. de C.V.: 100% ownership.
  • Buenavista del Cobre, S.A. de C.V.: 100% ownership.
  • Mexicana de Cobre, S.A. de C.V.: 98.18% ownership.
  • Compañia Minera Los Tolmos, S.A.: 100% ownership.
  • Grupo Mexico Servicios, S.A. de C.V.: 100% ownership.
Southern Copper Corporation A Comprehensive Corporate Profile
Southern Copper Corporation A Comprehensive Corporate Profile

Physical Properties

SCC’s physical assets are massive industrial complexes spanning mines, processing plants, and support infrastructure.

Mexican Properties

  • Buenavista (Sonora): Two concentrators (82,000 and 115,000 tonnes/day capacity), two SX/EW plants (I & II), and the new SX/EW III plant (120,000 tonnes/year leachable material capacity).
  • La Caridad (Sonora): Concentrator (94,500 tonnes/day), Molybdenum Plant (2,000 tonnes/day), Smelter (1,000,000 tonnes/year), Refinery (300,000 tonnes/year), Rod Plant (150,000 tonnes/year), Precious Metals Plant, and Effluent/Dust Treatment Plant.
  • Underground Mines:
    • Santa Barbara: 5,800 tonnes/day milling.
    • Santa Eulalia: 1,450 tonnes/day milling.
    • San Martin: 4,400 tonnes/day milling.
    • Charcas: 4,100 tonnes/day milling.
    • Taxco: 2,000 tonnes/day milling.
    • Zinc Refinery (San Luis Potosi): 288 tonnes/day.

Peruvian Properties

  • Toquepala (Tacna): Concentrator with 120,000 MT/day capacity (following expansion). SX/EW plant authorized for 18,756 tonnes/day.
  • Cuajone (Moquegua): “Botiflaca Concentrator” with 90,000 MT/day capacity. Leaching plant authorized for 3,100 MT/day.
  • Ilo Metallurgical Complex (Moquegua): Smelter (1,200,000+ tonnes/year capacity), Refinery (810 MT/day), Sulfuric Acid Plant (300,000 tonnes/year).

Segment-Wise Performance

Peruvian Operations

  • Revenue Contribution: Operations in Peru saw a 10.7% growth in copper production in 2024.
  • Project Highlights: The Tia Maria project is a major focus, expected to export $17.5 billion over 20 years.
  • Environmental Spend: $4.4 million capital investment in 2024.

Mexican Operations

  • Revenue Contribution: Operations in Mexico achieved a 4.3% growth in copper production.
  • Operational Highlight: The Buenavista zinc concentrator generated 64,297 additional tons of zinc, driving a 98.5% segment increase.
  • Environmental Spend: $173.0 million capital investment in 2024.

Founders

The company was founded as Southern Peru Copper Corporation on December 12, 1952. It was established to exploit copper deposits in southern Peru. The original incorporation involved major American mining interests of that era. The corporate entity evolved significantly through the 1999 acquisition by Grupo Mexico (via ASARCO) and the 2005 merger with Minera Mexico. The current leadership and strategic direction are defined by the Larrea family and Grupo Mexico’s stewardship.

Shareholding Pattern

The company has a highly concentrated ownership structure, qualifying it as a “controlled company” under NYSE rules.

  • Promoters / Parent: Americas Mining Corporation (AMC) holds 702,774,877 shares, representing 88.9% of the total equity. AMC is a wholly-owned subsidiary of Grupo Mexico S.A.B. de C.V.
  • Public / Third Parties: 87,635,228 shares, representing 11.1% of the total outstanding shares.
  • Total Outstanding Shares: 790,410,105 (as of December 31, 2024).
  • Share Repurchase: A $3 billion share repurchase program is authorized, though no activity was registered since 2016.

Parent

Grupo Mexico S.A.B. de C.V. is the ultimate parent company.

  • Role: A Mexican holding company engaged in mining, transportation (railroads), and infrastructure.
  • Relation to SCC: Owns 100% of Americas Mining Corporation (AMC), which in turn owns 88.9% of SCC.
  • Chairman: German Larrea Mota-Velasco.
  • Strategic Impact: Provides strategic direction, financial backing, and integrated management across its subsidiaries.

Investments and Capital Expenditure Plans

SCC is committed to an aggressive growth strategy fueled by substantial capital expenditures.

  • 2024 Capital Investment: $1,027.3 million (representing 30.3% of net income).
  • 2025 Approved Capital Program: $1,598.0 million.
  • Decade Investment Plan: The current program for this decade exceeds $15 billion.

Key Investment Projects

  • Tia Maria (Peru): Greenfield project. Budget: $1,802 million. Capacity: 120,000 tons SX/EW copper cathodes. Status: Construction expected to begin in 2024; operations by 2027.
  • Los Chancas (Peru): Greenfield project. Budget: $2,600 million. Capacity: 130,000 tons copper, 7,500 tons molybdenum. Operations expected by 2031.
  • Michiquillay (Peru): Greenfield project. Budget: ~$2.5 billion. Capacity: 225,000 tons copper. Production start-up by 2032.
  • El Pilar (Mexico): Greenfield project. Budget: $310 million. Capacity: 36,000 tonnes copper cathodes.
  • El Arco (Mexico): Potential world-class copper deposit with reserves over 1,230 million tonnes.
  • Quebrada Honda Dam Expansion (Peru): Budget: $165.0 million. Project aimed at enlarging main and lateral dams.

Future Strategy

The management has outlined a clear path for organic growth and capacity expansion.

  • Production Goal: Increase copper volume production to 1.5 million tonnes by 2032.
  • 2025 Outlook:
    • Copper Production: 967,000 tons (maintaining current levels).
    • Zinc Production: 171,700 tons (+32% increase).
    • Silver Production: 23 million ounces (+10% increase).
    • Molybdenum Production: 26,200 tons (-10% decrease).
  • Mexican Investment Strategy: Invest over $600 million in 2025, with 50% targeting modernization and 43% targeting water/tailings improvements.
  • Sustainability Goal: Developing climate change mitigation and adaptation plans in 2025 and evaluating nature-based solutions.

Key Strengths

  • Largest Copper Reserves: SCC holds the world’s largest copper reserve position (112,668 million pounds), ensuring long-term operational viability.
  • Low Cost Producer: Consistently operating with one of the lowest cash costs in the industry ($0.89 per pound in 2024), driven by substantial by-product credits.
  • Financial Robustness: Record net sales of $11.4 billion and a net income margin of 29.5% in 2024.
  • Vertical Integration: Full control over mining, smelting, and refining processes allows for operational efficiency and logistic autonomy.
  • Dividend Payout: Consistent return of capital to shareholders, paying $1,637.2 million in dividends in 2024.

Key Challenges and Risks

  • Market Volatility: Financial performance is heavily dependent on international metal prices (LME/COMEX). 2023 saw negative impacts from lower prices, though 2024 saw recovery.
  • Regulatory Changes:
    • Mexico: 2023 Mining Law reforms reduced concession terms from 50 to 30 years and imposed new water/remediation restrictions.
    • Peru: Operations are subject to Special Mining Tax (2%-8.4%) and Mining Royalties (1%-12%).
  • Social and Community Relations: Projects like Tia Maria require extensive community engagement to proceed. The company invests heavily ($103.7 million in 2024) in social infrastructure to mitigate this risk.
  • Environmental Compliance: Strict regulations in Mexico (PROFEPA) and Peru (MINAM) regarding water, air quality, and tailings. The Guaymas sulfuric acid spill in 2019 led to temporary closures.
  • Labor Relations: 69.8% of Mexican and 60.9% of Peruvian employees are unionized, requiring continuous negotiation of collective bargaining agreements.

Conclusion and Strategic Outlook

Southern Copper Corporation continues to solidify its position as a titan in the global copper industry. The company’s 2024 performance was marked by record sales, substantial production growth across all metals, and a disciplined approach to cost management. With the world’s largest copper reserves and a strategic roadmap targeting 1.5 million tonnes of production by 2032, SCC is poised for sustained long-term growth.

The company’s aggressive capital investment plan of over $15 billion for the decade highlights its commitment to organic expansion through projects like Tia Maria, Los Chancas, and El Pilar. While navigating regulatory shifts in Mexico and Peru, SCC’s proactive social investments and environmental certifications (Copper Mark) demonstrate a resilience strategy aimed at securing its social license to operate. As global demand for copper rises with the energy transition, Southern Copper Corporation’s low-cost model and massive reserve base position it advantageously for the future.

Official Site: https://southerncoppercorp.com/

FAQ Section

Q1: What was Southern Copper Corporation’s net sales revenue in 2024? A1: In 2024, Southern Copper Corporation achieved record net sales of $11,433.4 million, representing a 15.5% increase compared to the previous year.

Q2: How much copper did Southern Copper Corporation produce in 2024? A2: The company produced a total of 973,851 tonnes of copper in 2024, which was a 6.9% increase year-over-year.

Q3: What are the major mining projects Southern Copper is developing? A3: Major investment projects include the Tia Maria, Los Chancas, and Michiquillay projects in Peru, and the El Pilar and El Arco projects in Mexico.

Q4: Who is the majority shareholder of Southern Copper Corporation? A4: Americas Mining Corporation, a subsidiary of Grupo Mexico, owns 88.9% of Southern Copper Corporation’s shares.

Q5: What is Southern Copper Corporation’s production target for 2032? A5: The company has set a strategic goal to increase its copper volume production to 1.5 million tonnes by 2032.

Q6: What is the estimated capital investment for the Tia Maria project? A6: The new budget for the Tia Maria project in Arequipa, Peru, has been set at $1,802 million.

Q7: How much did Southern Copper invest in social projects in 2024? A7: The company invested $103.7 million in social initiatives aimed at education, health, productive projects, and infrastructure development in its communities.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.

By Raveendran
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