Southern Copper gets environmental nod for US$62mn Peru smelter modifications

After Peru's environmental certification service for sustainable investments, Senace, approved a fifth substitute technical report (ITS) for Southern Copper's Ilo unit, the Grupo México company may start work at the refinery and smelter in Moquegua region and invest up to US$62.4 million.

The modifications were approved on August 16, but Senace published the decision only late last week.

According to the ITS, prepared by environmental consultancy Anddes Asociados, Southern Copper plans seven improvements, including switching energy supply from oil to natural gas, building electric cogeneration systems and increases in storage capacity.

See the report in the Documents box in top-right corner.

Works will take 15 months and start in coming weeks. Southern filed the ITS in March and planned to start works in April.

Southern said the Ilo facility has copper smelting and refining areas, and receives ore from the Cuajone (Moquegua region) and Toquepala (Tacna) mines. The three units are connected via an internal rail network, which is also used to transport fuel and sulfuric acid, among other components. 

The smelting area has capacity to process 1.2Mt/y, according to the report.

An ITS for the US$692mn extension of the Cuajone mine and another for the US$1.4 billion Tía María greenfield copper project in Arequipa region remain under evaluation.

The Cuajone ITS was also submitted in March, detailing modifications like expanding concentration plant capacity from 90,000t/d to 108,000t/d, improving the molybdenum flotation process and creating a new water reservoir. Works will take 30 months.

At Tía María, Southern wants to invest an additional US$4.15mn during the operational stage expected to start in 1H27. Works should be finished within 27 months.