Southern Copper (NYSE:SCCO) is considering a US$680 million ($968 million) expansion of its Cuajone copper mine in southern Peru.
The proposal would increase milling capacity by 33% from 90,000–120,000 tonnes per day.
Southern Copper says the expansion would require additional mining equipment and a new production line at the Cuajone concentrator.
The company estimates the expanded operation could produce an average of 55,000 tonnes of copper and 1,400 tonnes of molybdenum annually.
Southern Copper is also studying a larger expansion that would lift milling capacity to 150,000 tonnes per day.
CEO Raul Jacob says the 120,000-tonne-per-day option is currently the more likely scenario, with a decision on the expansion’s scale expected in early 2027.
However, the company has not made a final investment decision or disclosed a construction timetable.
The proposal comes as lower ore grades weigh on Southern Copper’s Peruvian operations. Mined copper production across the company falls 2.9% to 693,602 tonnes during the first nine months of 2026, mainly due to lower grades at its mines in Peru.
Cuajone is an open-pit copper and molybdenum operation in Peru’s Moquegua region.
Southern Copper operates mines and metallurgical facilities in Peru and Mexico. Grupo México (BMV:GMEXICOB) owns 88.9% of the company.
Write to France Pinzon at Mining.com.au
Main image: Southern Copper
