Southern Copper Corp. is preparing to scale the ranking of global producers by spending more than $10 billion in Peru and Mexico.
Southern Copper Corp Mining News
The two companies jointly own the Coimolache mining company in Peru, and are both junior partners in large mines in Peru controlled by U.S.-based companies.
Southern Copper’s Manager of Technical Services said that the company has been able to knock down previous resistance from local communities.
Southern Copper Corp's chief executive said on Wednesday it had reached a settlement with a company in Peru that blocked development of its $1.4 billion Tia Maria project with a legal injunction.
The government of new Peruvian President Martin Vizcarra said it would not "impose" mining projects on nearby communities that object to them.
Winning bidder for Michiquillay project says production will start in 2025 to become one of the largest mines in the world's number two producing country.
Mining investment in Peru is expected to grow 9% this year when compared to 2016, marking the end of a three-year decline than began in 2014, to reach $10 billion next year thanks to these projects.
This is the third strike this year over profit-sharing staged by the company’s unions and it affects Southern Copper's two mines in the country — Cuajone and Toquepala.
Peruvian government is expected to issue a long-awaited construction permit for the mine in the first quarter of 2018.
The indefinite labour action involves 56 unions, which are protesting a government’s proposed reform they see as "anti-workers".
INTERACTIVE MAP: Together reserves at the global top 10 copper mining projects are worth more than $360 billion.
The new section of the Toquepala open-pit mine in southern Tacna, Peru, is expected to begin operations in early 2018.
China is currently the top investor in the country's sector, pumping $19.2 billion into several copper, gold and silver projects.
The former president says lack of immediate benefits for communities has driven mining opposition causing the country to lose billions worth of gold and copper projects.
Six people have been killed in anti-mining protests so far this year, including three at last week's clash between police and locals near Las Bambas copper mine.
Total for this year may be $7.7 billion, down from 2014's $8.7 billion and significantly lower than a record $10 billion in 2013.
The company could extend a 60-day pause in effect since late May to allow locals more time to clear up their doubts about the project’s environmental impact.
The move suspends civil liberties, allowing police and troops to enforce curfews in an effort to end two months of fresh violence in Arequipa.
Farmers, anti-mining activists and local leaders have opposed the project for years, claiming it will pollute key waterways for Arequipa, where the mine will be built.
The expansion will boost the capacity of the Peruvian mine's copper concentrator to 120,000 tonnes per day from 60,000.
Minister of the Environment Manuel Pulgar-Vidal said the debated and long-delayed copper mine won’t hurt water supplies as opponents claim.
Around 15,000 of the total 55,000 licences in effect risk fines and even losing all privileges over the land.
Chinese backers are now behind one-third of all Peru’s new mining investments by value.
The mine is expected to produce 120,000 tons of copper a year during its 20 years of mine life.
Currently China is the second largest producer of the red metal, with an annual output of about 1.6 million tonnes per year.