Southern Copper plans $319M Cuajone mine overhaul

Southern Copper (NYSE, LON: SCCO) plans to invest $318.6 million to upgrade its Cuajone copper mine in southern Peru as the company works to lower costs and maintain production at one of its key operations.

The 17-month program at the Moquegua-region mine includes installing a new filter press at the concentrator plant to support output during maintenance shutdowns and improve concentrate quality. The project also covers relocating part of the mine’s freshwater pipeline, preparing an additional 25.3 hectares for leaching, adapting the site’s sewer network and building a new electrical substation and control room tied to the filter system.

The investment follows a turbulent period for Southern Copper in Peru. In April, Peru’s energy and mines ministry reinstated the permit for the company’s $1.8 billion Tia Maria copper project after briefly revoking the exploitation licence and ordering a fresh technical review during a turbulent presidential election period.

Cuajone produced nearly 163,000 tonnes of fine copper in 2025 and, together with the Toquepala mine, helped lift Southern Copper’s output in the final quarter of the year. Both operations received The Copper Mark accreditation in 2025 for complying with the International Council on Mining and Metals’ Global Industry Standard on Tailings Management.

The company is also advancing upgrades at Toquepala after receiving regulatory approval in January 2025 for about $79 million in improvements.The work includes a new desliming unit for low-grade ore processing, thickeners to improve water recovery from tailings, and seepage management enhancements.

The projects are part of Southern Copper’s broader strategy to improve efficiency and sustainability across its Peruvian operations as declining ore grades at Cuajone and Toquepala weigh on production. The company forecasts copper output of 911,400 tonnes this year and about 900,000 tonnes in 2027, down from 954,270 tonnes in 2025.

Southern Copper aims to increase annual copper production to 1.6 million tonnes by 2033.