Southern Copper to invest US$600mn in Mexico in 2025

Minera México, a subsidiary of Southern Copper, plans to invest more than US$600mn in its metallurgical facilities open-pit and underground mines in 2025.

The results report of the Grupo México company stated that “50% of this investment will be used to guarantee the viability of long-term operations by actively modernizing and updating assets. About 43% of the investment will target improvements in water usage and tailings management to ensure safety and efficiency at our operations.”

It added, “remaining funds will be invested in efforts to bolster optimization and growth.”

The capital investment program for this decade exceeds US$15bn and covers programs in Mexico and Peru. 

This week, Minera México, listed on the New York stock exchange, successfully issued a US$1bn international bond with a seven-year maturity. “The resources obtained through this issue will be used to finance investment projects in Mexico, including actions to improve its efficiency and productivity, among other business objectives,” the company said in a statement.

A preliminary version of the government's Plan Mexico, launched by President Claudia Sheinbaum in January, detailed goals and actions for each strategic sector. In mining, the need to replace 20% of copper wire and spring imports through joint ventures stands out.

According to the draft of the investment program, Grupo México will announce an investment in the Sonora Plan for clean energy during the first 100 days after Plan Mexico officially launches.

Contacted by BNamericas, a company spokesperson declined to comment.

Pipeline

In its results report, Southern Copper updated its El Pilar project in Sonora state and El Arco in Baja California. 

El Pilar, a low-capital intensive copper greenfield project, is 45km from Southern Copper’s Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317Mt of ore with an average copper grade of 0.25%. 

“We anticipate that El Pilar will operate as a conventional open-pit mine with an annual production capacity of 36,000t of copper cathodes. This operation will use highly cost-efficient and environmentally friendly SX-EW technology. The budget for El Pilar is US$310mn,” the company said.

“The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options for optimization. The company is engaging in project development and on-site environmental activities. Mine life is estimated at 13 years,” it added. 

El Arco, a world-class copper deposit, has sulfide ore reserves of over 1.23Bt, and an average ore grade of 0.40%, and 141Mt of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120,000t/d concentrator and 28,000t/y SX-EW operations.  

The company said it completed the environmental baseline study for the mine. “Currently, more detailed engineering is being conducted for concentrator, SX-EW plant as well as for water desalination, logistics infrastructure and power delivery,” it added. 

Southern Copper has several projects in its Mexican pipeline that may boost organic growth if stakeholders and communities find them valuable. “These projects are Angangueo, Chalchihuites, and the Empalme smelter, which could bolster our position as a fully integrated copper producer.” 

Production

Southern Copper reported total copper production of 973,851t in 2024, marking a 6.9% increase. Growth was driven by the Peruvian mines, Cuajone and Toquepala, which posted a 10.7% production increase.

Due to lower ore grades at Cuajone, total copper output is expected to reach 960,000t in 2025, decline to 900,000t in 2026, reflecting lower grades at Cuajone and Toquepala, and rebound to 950,000t in 2027.