Southern Copper Corp Dossier
Qualitative Analysis
Business overview
Southern Copper Corporation (SCC) is one of the largest integrated copper producers in the world, specializing in the extraction, smelting, and refining of copper, molybdenum, zinc, silver, and other metallurgical by-products. Incorporated in 1952, the company is a majority-owned subsidiary of Americas Mining Corporation, which is itself a wholly-owned subsidiary of Grupo Mexico S.A.B. de C.V. (holding an 88.9% stake). Southern Copper operates world-class, low-cost, and long-life mining assets primarily located in Peru and Mexico, including the Toquepala and Cuajone mines in Peru, and the Buenavista and La Caridad mines in Mexico. The company's competitive advantage is anchored in its industry-leading cash cost structure, which frequently drops below zero net of by-product credits, and its massive copper reserve base.
Research as of 29 Jul 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Resumption and development of the Tia Maria copper project in Arequipa, Peru, which had been suspended due to local opposition.
Expected impact: Will add 120,000 tons of annual copper production, driving total company output to 970,000 tons in 2028 and over 1 million tons by 2029.
A comprehensive upgrade program at the Cuajone copper mine in southern Peru to lower operating costs and maintain production levels.
Expected impact: Includes installing a new filter press at the concentrator plant to support output during maintenance, relocating a freshwater pipeline, preparing 253,000 square meters for leaching, and building a new electrical substation.
Operational and technological upgrades at the Ilo metallurgical complex in Moquegua, Peru, which processes ore from Toquepala and Cuajone.
Expected impact: Relocation and modernization of the Ilo 1 electrical substation ($25.19 million), expansion of the anode and cathode storage slab to optimize logistics, and replacement of the bearing cooling system with plate heat exchangers to ensure operational continuity.
Efficiency and environmental sustainability improvements at the Toquepala mine in Peru.
Expected impact: Installation of a new desliming unit for low-grade ore processing, thickeners to improve water recovery from tailings, and seepage management enhancements to mitigate declining ore grades.