Southern Copper eyes 2027 start for $1.8B Tía María mine

Southern Copper (NYSE, LON: SCCO) is pushing forward with its long-delayed Tía María copper mine in Peru, aiming to start production in 2027.

The company, a subsidiary of mining giant Grupo Mexico, has raised the project’s spending total to $1.8 billion, up from the previously planned $1.4 billion. 

Located in the Islay province of Peru’s Arequipa region, Tía María has faced years of delays due to strong local opposition over environmental concerns. Protests against the project left six people dead between 2011 and 2015, forcing its suspension. The Peruvian government approved the mine in 2019, contingent on social stability, and Southern Copper resumed development in 2024. The company now expects to break ground in the first half of 2025.

“Tía María will generate significant revenues for the Arequipa region from day one of its operations. At the current copper price, we expect to export $17.5 billion and contribute $3.4 billion in taxes and royalties during the first 20 years of operation,” Southern Copper said in its fourth quarter 2024 earnings report.

Early construction efforts will focus on roads, rail access, and a temporary camp, alongside earthmoving and mine clearance. Once operational, the mine is expected to produce 120,000 tonnes of copper annually and create 764 direct jobs, with an additional 4,800 indirect jobs.