In the fourth quarter of the year, the concentrator II in Toquepala began to operate with a grinding capacity of 60,000 tons per day.
The project for the formation of leachable deposits with crushing and conveyor belts in Toquepala was completed, as well as the construction of new dams for PLS. SCC announced an ambitious investment program for $2,108 million, which included the development of the Tía María copper deposit (with a production capacity of 120,000 tons of SX-EW copper), the expansion of mine and concentrator operations in Cuajone and Toquepala; in addition, the current processing capacity of the smelter and refinery to treat the new production of concentrates.
Despite the COVID-19 pandemic, Southern Copper, for the first time in its history, exceeds the barrier of one million tons of copper; reaching to produce 1,001,369 tons.
Minera Mexico S.A. de C.V., issues $1,000 million of fixed-rate senior notes at a discount of $12.7 million intended primarily for the development of the Pilares, Buenavista del Zinc and El Pilar projects; all of them in Mexico.
The Company signs a contract for the acquisition of the Michiquillay copper project in Cajamarca, Peru, at a purchase price of $400 million. Michiquillay is a world-class mining project with mineralized material estimated at 1,150 million tons and a copper grade of 0.63%. It is expected to produce 225,000 tons of copper per year over an initial mine life of more than 25 years.
The new concentrator in Buenavista del Cobre comes into operation, with an annual copper production capacity of 188,000 tons. The program also included two molybdenum plants with a combined annual capacity of 4,600 tons.
Construction of the third SX-EW plant in Buenavista del Cobre with an annual nominal capacity of 120,000 tons of copper is completed.
The Cuajone mining complex was inaugurated and began operations in 1976, with a production capacity of 58,000 t/day of milling.
Southern Copper Corporation (SCCO) becomes the company with the largest copper reserves in the world. The Company issued $1.5 billion in bonds to be used for its expansion program. The notes issued were: $400 million at 5.375% due in 2020 and $1.1 billion at 6.75% due in 2040. The Company restarted production at its Cananea operations. As a way to reflect the beginning of a new era to develop this asset to its full potential, we have changed the trade name of the company operating the Cananea property to Buenavista del Cobre (“Buenavista”). Our SX/EW plants reached full capacity in the fourth quarter.
Operations began at the by-product treatment plant in La Caridad metallurgical complex, and the modernization of the Agua Prieta Lime Plant was also completed, which meets Mexican environmental regulations.