8-KOther Events

SOUTHERN COPPER CORP/ 8-K Report, Corporate Update (Feb 21, 2018)

Filed February 21, 2018For Securities:SCCO

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.

Frequently Asked Questions

The acquisition of the Michiquillay project significantly strengthens Southern Copper's position as a leading copper producer. It adds a world-class, long-life asset with substantial copper resources and expected significant annual production to its portfolio, complementing its existing operations and reserves.

Southern Copper estimates a capital investment of approximately $2.5 billion for the Michiquillay project. Production is expected to commence in 2025, with an initial mine life of over 25 years.

The project is expected to produce around 225,000 tons of copper per year. In addition to copper, it will also yield valuable by-products such as molybdenum, gold, and silver.

Southern Copper stated its intention to make every effort to work closely with the local communities and the Government of Peru to reach satisfactory social agreements. This approach aims to establish a strong and shared foundation for the project's development.