Summary
This filing is an amendment to a previous Form 8-K, providing an update on illegal work stoppages at Southern Copper Corporation's (SCC) mining and concentrating units in Sonora and Zacatecas, Mexico. Despite ongoing efforts by SCC and its parent company, Grupo México (GMexico), these stoppages have continued for over 18 days as of March 24, 2006. While acknowledging the disruptions, SCC does not anticipate a significant adverse financial impact. This is primarily due to the expectation that high metal prices for gold, silver, and zinc produced at other SCC units, coupled with strong market demand, will offset any potential losses. SCC is seeking governmental intervention to ensure compliance with the law and the prompt resumption of mining activities, expressing confidence in the administration to resolve the situation and lift any Force Majeure declarations on commercial contracts.
Key Highlights
- 1Amendment to a previous Form 8-K providing an update on work stoppages.
- 2Illegal work stoppages are ongoing at La Caridad, Lime Plant, and San Martín mine in Sonora and Zacatecas, Mexico.
- 3Stoppages have exceeded 18 days as of the reported event date of March 24, 2006.
- 4Southern Copper Corporation (SCC) does not foresee a significant negative financial impact.
- 5High metal prices (gold, silver, zinc) and strong market demand are expected to compensate for potential losses.
- 6SCC is appealing to the Federal Government and state authorities for intervention to ensure legal compliance and resumption of operations.
- 7Grupo México (GMexico) is confident in the administration's ability to resolve the issue and lift Force Majeure on contracts.