Summary
Southern Copper Corporation (SCCO) reported an environmental incident on August 12, 2014, stemming from an accidental spill of approximately 40,000 cubic meters of acid solution of copper sulfate at its Buenavista del Cobre mine in Sonora, Mexico. The spill occurred on August 6, 2014, due to heavy rains and entered the Bacanuchi river, an affluent of the Sonora river. Mexican federal authorities, specifically PROFEPA, have initiated administrative proceedings and subsequently filed a criminal complaint against SCCO's subsidiary, Buenavista del Cobre, S.A. de C.V. While the company states it is cooperating with authorities and conducting remedial actions, potential sanctions include significant fines, cleanup costs, and compensation for affected parties. SCCO maintains that this event will not materially impact its operations or financial condition.
Key Highlights
- 1Accidental spill of 40,000 cubic meters of acid copper sulfate solution at Buenavista del Cobre mine in Sonora, Mexico.
- 2Spill occurred on August 6, 2014, due to heavy rains and impacted the Bacanuchi river.
- 3Mexican environmental authorities (PROFEPA) have launched administrative proceedings and a criminal complaint against the subsidiary.
- 4Potential sanctions include fines up to MXN $40 million, cleanup costs, and compensation for affected individuals.
- 5SCCO's subsidiary is cooperating with authorities and conducting remedial investigations.
- 6The company believes the event will not have a material adverse impact on its operations or financial condition.
- 7The report was filed on August 20, 2014, with the earliest event date being August 12, 2014.