What is the significance of the 'force majeure' ruling for Southern Copper Corp?

The force majeure ruling by the Mexican Federal Labor Court is significant because it legally validates Southern Copper's actions in terminating employees at its Cananea mine. It provides a legal justification for these terminations stemming from the damages caused by striking workers since 2007.

What actions by striking workers led to this ruling?

The ruling cites damages caused by the neglect and sabotage of striking workers since the commencement of labor stoppages and strikes in July 2007 as the basis for the force majeure declaration.

What is Southern Copper's expected next step following this ruling?

Southern Copper expects due compliance with the ruling by relevant federal and state authorities and looks forward to recovering control of the Cananea mine.

Does this ruling resolve the labor dispute at the Cananea mine?

While the ruling provides a legal basis for employee terminations and helps SCCO regain control, the full resolution of the labor dispute will depend on the compliance of authorities and future operational decisions by the company.

SCCO 8-K SEC Disclosure

Summary

Southern Copper Corporation (SCCO) has announced a significant legal victory regarding its Cananea mine in Mexico. A Mexican Federal Labor Court has ruled that the damages incurred by the mine due to neglect and sabotage by striking workers since July 2007 constitute a force majeure event. This ruling provides a legal basis for SCCO's subsidiary, Mexicana de Cananea, to terminate both individual and unionized employees associated with the labor stoppages.

Key Highlights

1Mexican Federal Labor Court ruled in favor of Southern Copper Corporation (SCCO) concerning the Cananea mine dispute.
2The court recognized the damages from striking workers' actions (neglect and sabotage) as a force majeure event.
3This force majeure declaration allows SCCO's subsidiary, Mexicana de Cananea, to legally terminate employees.
4The ruling addresses labor stoppages that began in July 2007.
5SCCO anticipates cooperation from federal and state authorities in implementing the court's decision.
6The company looks forward to regaining full control of the Cananea mine operations.

SOUTHERN COPPER CORP/ 8-K Report, Corporate Update (Feb 16, 2010)

Summary

Key Highlights

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