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| Southern Copper Mexican mining projects |
Southern Copper aims to invest $10.2 billion in Mexican mining projects, pending regulatory approvals. This investment focuses on both open-pit and underground copper operations, reflecting the company’s commitment to maintaining its global copper producer status. Meanwhile, its Peru-based Tía María project targets 2027 production despite past delays.
Regulatory Challenges and Investment Pipeline in Mexico
Southern Copper negotiates with Mexico’s government to overcome permit delays that stalled $6.9 billion in investments. Minera México plans over $600 million investment by 2025, split between infrastructure modernization and environmental initiatives. Projects such as Angangueo, Chalchihuites, and Empalme smelter aim to enhance the company’s integrated copper production capacity.
The Mexican mining chamber reports 116 pending environmental approvals and 107 water permits, reflecting regulatory bottlenecks. However, Southern Copper’s negotiations with President Claudia Sheinbaum’s administration suggest progress toward unlocking these investments, which could also create 50,000 jobs.
Peru’s Tía María Project Progress and Economic Impact
Southern Copper increased the Tía María project budget to $1.8 billion, with production expected in 2027. Despite local opposition and years of delay, construction milestones include 90% completion of access roads and site preparation. The mine is forecasted to generate $18.2 billion in exports and $3.8 billion in taxes over 20 years.
The project supports significant employment, with over 1,300 jobs created and plans to hire 3,500 workers during construction. Southern Copper’s positive outlook on copper demand underpins its confidence in expanding its mining portfolio amid global economic uncertainty.
ScrapInsight Commentary
Southern Copper’s renewed Mexico investments depend heavily on regulatory approvals that have stalled billions in projects, signaling ongoing government-industry friction. The $1.8 billion Tía María mine’s progress highlights resilience despite local opposition. These developments will influence copper supply and pricing dynamics crucial for scrap and refining sectors worldwide.
