Introduction to Southern Copper and Its Parent Company, Grupo México
Southern Copper Corporation (SCC), a subsidiary of Grupo México, has announced plans to invest $10.2 billion in various mining projects across Mexico over the coming years, without a predetermined timeline. This significant investment will focus on open-pit copper mines that require special authorization from the federal government.
Recent Mexican Mining Reform and Government Permits
In the latest reform of Mexico’s mining sector, legislators left room for the federal executive to sign contracts and grant concessions “in exceptional cases determined by the Executive Federal through the committee designated by law, due to their strategic importance for national development.”
Southern Copper Corporation stated that it expects to receive the permits and licenses previously suspended by the previous administration. “We are in discussions with the current administration to continue SCC’s investments in Mexico worth $10.2 billion,” the company said.
Minera México’s Investment Plans
Minera México, SCC’s subsidiary, plans to invest over $600 million by 2025 in both open-pit and underground mines. Half of this investment will ensure long-term operational viability through modernization and upgrades to assets, while the remaining funds will focus on water usage improvements and tailings management for operational safety and efficiency.
El Arco Project Details
One of SCC’s significant investments is the El Arco copper project, a world-class open-pit mine located in central Baja California. The project holds over 1.23 billion tons of sulfide mineral reserves with an average grade of 0.40%, alongside 141 million tons of leachable material with an average grade of 0.27%. The project includes a 120 ktpd open-pit mine, a concentrator, and SX-EW operations at 28 ktpa. Engineering details for the concentrator, SX-EW plant, water desalination, logistics infrastructure, and energy supply are still under development.
El Pilar Project Details
Another planned investment is the El Pilar copper project, a low-capital project strategically located in Sonora, approximately 45 kilometers from the Buenavista mine. The project’s oxide copper mineralization holds proven and probable reserves estimated at 317 million tons with an average copper grade of 0.249%. El Pilar is expected to operate as a conventional open-pit mine with an annual production capacity of 36,000 tons of copper cathodes using highly profitable and environmentally friendly SX-EW technology.
Grupo México anticipates the start of El Pilar operations in 2027 and El Arco in 2030.
Community Impact and Sustainability
Southern Copper Corporation highlighted that it has several projects that could foster organic growth if deemed valuable to stakeholders and local communities.
Key Questions and Answers
- What is Southern Copper Corporation (SCC)? SCC is a subsidiary of Grupo México, a prominent Mexican conglomerate with interests in mining, transportation, and infrastructure.
- Why is this investment significant? The $10.2 billion investment in Mexico will modernize and expand SCC’s mining operations, ensuring long-term viability while focusing on environmental sustainability.
- What are the key projects mentioned? The two main projects are El Arco in Baja California and El Pilar in Sonora, both copper open-pit mines with distinct reserve estimates and production capacities.
- When are these projects expected to start? El Pilar is projected to begin operations in 2027, while El Arco is scheduled for 2030.
- How will these projects impact the local communities? SCC aims to ensure that its projects contribute positively to stakeholders and local communities, fostering organic growth and sustainability.
