Summary
Southern Copper Corporation (SCCO) announced on February 21, 2018, a significant development with its win of the public bidding for the Michiquillay project in Cajamarca, Peru. This acquisition, for a proposed price of $400 million, represents a strategic expansion for the company, adding a world-class mining project to its portfolio. The Michiquillay project boasts substantial estimated mineral resources of 1,150 million tons with a 0.63% copper grade. SCCO anticipates it will produce approximately 225,000 tons of copper annually, alongside by-products such as molybdenum, gold, and silver, for an initial mine life exceeding 25 years. The estimated capital investment for the project is around $2.5 billion, with production expected to commence in 2025, positioning Michiquillay as one of Peru's largest copper mines.
Key Highlights
- 1Southern Copper Corp (SCCO) won the public bidding for the Michiquillay project in Peru for $400 million.
- 2The Michiquillay project is estimated to have 1,150 million tons of mineral resources with a 0.63% copper grade.
- 3Annual copper production is projected at 225,000 tons, with by-products including molybdenum, gold, and silver.
- 4The initial mine life for Michiquillay is expected to exceed 25 years.
- 5SCCO estimates a capital investment of approximately $2.5 billion for the project.
- 6Production is anticipated to begin in 2025, making Michiquillay one of Peru's largest copper mines.
- 7The company emphasized its commitment to working with local communities and the Peruvian Government on social agreements.