8-KOther Events

SOUTHERN COPPER CORP/ 8-K Report, Corporate Update (Mar 15, 2022)

Filed March 15, 2022For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) disclosed a significant operational disruption at its Cuajone mine in Peru. A group from the Tumilaca, Pocata, Coscore, and Tala rural communities has illegally occupied the Viña Blanca reservoir for a second time, cutting off the water supply to the mine and its associated townsite. This action directly threatens the well-being of approximately 5,000 residents and has paralyzed copper production from the Cuajone mine, a key asset for the company. The company, through its Peruvian branch (SPCC), denies allegations of land usurpation, stating that its mining concessions and rights were legally granted by the Peruvian State in 1951 and have been in operation for over 45 years. SPCC has appealed to the Peruvian government and police to restore order and protect the water rights of the community, emphasizing its willingness to engage in dialogue once violent tactics cease.

Key Highlights

  • 1Illegal occupation of Viña Blanca reservoir by a rural community group, second occurrence.
  • 2Water supply cut to Cuajone mine and townsite, impacting 5,000 residents.
  • 3Paralysis of copper production at the Cuajone mine.
  • 4Company (SPCC) denies allegations of land usurpation, citing legal concessions granted in 1951.
  • 5Group has employed violent tactics, including railroad blockades.
  • 6SPCC requests government intervention to restore rule of law and water rights.
  • 7Company expresses willingness for constructive dialogue conditional on cessation of violent tactics.

Frequently Asked Questions

The illegal occupation of the Viña Blanca reservoir has cut off the water supply to the Cuajone mine and its townsite, leading to the paralysis of copper production at this facility. This also poses a threat to the well-being of the approximately 5,000 residents in the mine's townsite.

The group alleges usurpation of their land by SPCC. Southern Copper categorically denies these allegations, stating that the Cuajone mine has operated legally in the area for over 45 years under concessions and rights granted by the Peruvian State in 1951.

Southern Copper has appealed to the Peruvian Government and National Police to restore the rule of law and protect the water consumption rights of the Cuajone mine community. The company also reiterated its willingness to engage in constructive dialogue with the group leaders, provided they cease their violent and coercive tactics.

Yes, this is the second time the group has illegally occupied the Viña Blanca reservoir to cut off water supply. They had previously used violent tactics to disrupt operations, including blocking the mine's railroad since February 10, 2022.