Summary
Southern Copper Corporation (SCCO) filed an 8-K on September 4, 2014, to provide an update on its Buenavista del Cobre mine in Mexico. The company reported that the mine is operating normally and no significant changes in production are expected despite a temporary shutdown of certain recovery ponds by authorities. These ponds, located 10 km from the main operations, are part of a new expansion project (SX/EW III) and their shutdown is not impacting current production levels. The company reaffirmed its 2014 copper production target of 672,000 tons and reiterated its ambitious production growth plans for subsequent years, aiming for 840,000 tons in 2015, 995,000 tons in 2016, and 1,175,000 tons in 2017. Furthermore, SCCO has established a $300 million pesos ($23 million dollars) reserve to address damages and administrative sanctions stemming from a recent accident, demonstrating a commitment to community support and remediation.
Key Highlights
- 1Buenavista del Cobre mine operations continue normally with no expected impact on current production.
- 2Temporarily shut down recovery ponds are located 10 km from the main ore deposit and are related to future expansion (SX/EW III).
- 32014 copper production estimate remains unchanged at 672,000 tons.
- 4Company reaffirms strong copper production growth targets: 840,000 tons (2015), 995,000 tons (2016), and 1,175,000 tons (2017).
- 5A reserve of $300 million pesos ($23 million USD) has been established for damages and sanctions related to a recent accident.
- 6SCCO is coordinating with authorities and supporting affected communities for accident remediation.