Summary
Southern Copper Corporation (SCCO) has reported a labor disruption at its subsidiary, Mexicana de Cobre, S.A. de C.V. (Mexcobre) in Mexico. A group of followers of a former union leader are allegedly impeding workers from accessing the smelter and refinery complex through intimidation and violent actions. This has led to reduced operating capacity at the refinery, which is currently being managed by Mexcobre employees and a smaller number of unionized workers, alongside planned maintenance. Mexcobre has requested increased state security presence in the nearby town where many workers reside and has declared a force majeure situation to its clients and suppliers. Despite the operational challenges, the company does not anticipate a material economic impact, as it plans to sell copper concentrates internationally at favorable terms during this period.
Key Highlights
- 1Labor disruption at Mexcobre's smelter and refinery complex in Mexico due to actions by followers of a former union leader.
- 2Operations at the copper refinery are running at reduced capacity.
- 3Mexcobre is utilizing its own employees and a reduced number of unionized workers to maintain operations.
- 4The company has formally requested increased security presence from state authorities in a nearby town.
- 5Mexcobre has declared a force majeure to clients and suppliers.
- 6Southern Copper expects no material economic impact due to plans to sell copper concentrates on the international market.