KNOW OUR HISTORY
Welcome to Southern Copper Corporation, the mining company with the largest copper reserves in the world. We want to share with you the milestones of what we consider a fascinating business history beginning in 2005, from the merger of two Companies with great vocation and mining history, who decided to form one of the most efficient, integrated and profitable mining operations.
Southern Copper has 69 years working successfully in the service of the countries where it operates, its communities, personnel and shareholders.
“THINKING BIG WAS NOT ENOUGH, WE HAD TO ACT BIG AND THAT WAS WHAT WE DID…”
JORGE LARREA, FOUNDER OF GRUPO MEXICO.
Exploitation of the Toquepala mine in Tacna, Peru A branch was established in Peru, which signed a bilateral agreement with the Peruvian Government for the development and exploitation of the Toquepala mine in Tacna, Peru. The development works of the mine began in 1956, starting operations in 1960 with an initial production capacity of 46,000 t/day.
Grupo Industrial Minera Mexico S.A. de C.V. was established with mexican capital. La Caridad Concentrator Plant began operations in 1979, with a grinding capacity of 72,000 t/day.
The LESDE Plant in La Caridad began operations in 1995 with a capacity of 60 t/day, while the sulfuric acid plant in Ilo started operations with a design capacity of 140,600 t/year, with the aim of reducing gas emissions and provide acid for leaching operations.
SPCC began trading its common shares on the first business day of 1996, both on the New York Stock Exchange (NYSE) and the Lima Stock Exchange (BVL), under the symbol PCU, which was replaced in 2010 by SCCO to reflect the global character of Southern Copper Corporation.
The Environmental Management Adaptation Program (PAMA) was approved by the Peruvian government. According to it, the operations of Toquepala and Cuajone had a term of five years to adapt to what was established in the PAMA. For the Ilo smelting operation, the established term was ten years.
The Ilo Smelter modernization project began with the aim of improving efficiency in copper production to capture at least 92% of SO2 emissions and smelt 1.1 million tons of copper concentrate per year.
In April Southern Peru Copper Corporation merges with Minera Mexico and subsidiaries, consolidating itself as the most important mining company in Mexico and Peru, as well as the company with the largest copper reserves among companies listed on the stock exchange and one of the largest mining-metallurgical corporations in the world. Cerro Trading Company, Inc., SPC Investors L.L.C., Phelps Dodge Overseas Capital Corporation and Climax Molybdenum B.V., subsidiaries of two of SCC’s founding shareholders, sold their 14%(Phelps Dodge) and 14.2% Cerro) stakes in SCC. In order to adequately reflect the scope of operations of the consolidated Company, the Board of Directors approved the change of corporate name from Southern Peru Copper Corporation (SPCC) to Southern Copper Corporation (SCC) and received investment grade from S&P and Fitch. Subsequently, Moody’s granted SCC investment grade.
The Company issued an additional $400 million of notes from its 30-year program, and the issue proceeds were used in its expansion programs. As part of the modernization of the copper smelter in Ilo (Peru), blister production was replaced by anode production. The sulfides capture increased from 33% to more than 92%, in accordance with the commitment made with the Peruvian Government in 1997.
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.
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.
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.
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.
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.
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.
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.