Southern Copper Corporation, a subsidiary of Grupo México, is one of the largest integrated copper producers globally, with operations primarily in Peru and Mexico. The company's history spans from the early 20th century through mergers, expansions, and key leadership changes, culminating in its current market standing on the Bolsa de Valores de Lima (BVL) and the New York Stock Exchange.
Chronological Storyline (33 Milestones)
1952 CE
Formation of Southern Peru Copper Corporation
Southern Peru Copper Corporation (SPCC) was incorporated in Delaware as a joint venture between American Smelting and Refining Company (ASARCO), Cerro de Pasco Corporation, Phelps Dodge Corporation, and Newmont Mining Corporation to develop copper deposits in Peru. #mining #copper
Formation of Southern Peru Copper Corporation By NASA - Astronaut photograph ISS007-E-15222 taken from the International Space Station on September 22, 2003; [1], Public domain, https://commons.wikimedia.org/w/index.php?curid=22601301
1960 CE
Start of Toquepala Mine Operations
SPCC began operations at the Toquepala open-pit copper mine in southern Peru, one of the largest copper mines in the world at the time. The mine used advanced flotation and smelting technology. #mining #Peru
1965 CE
Opening of Ilo Smelter
SPCC commissioned the Ilo smelter in Peru to process copper concentrates from Toquepala and later Cuajone. The smelter became a key asset for the company's integrated operations. #smelting #copper
1970 CE
Cuajone Mine Development Begins
SPCC initiated development of the Cuajone copper mine near Toquepala, which would become another major source of copper ore. The project involved significant investment and infrastructure building. #mining #expansion
1976 CE
Cuajone Mine Commences Production
The Cuajone mine started commercial production, boosting SPCC's copper output significantly. The mine used open-pit methods and became a cornerstone of the company's Peruvian operations. #copper #production
1978 CE
Labor Strike at Southern Peru
A major labor strike occurred at SPCC, reflecting ongoing tensions between the company and Peruvian mining unions over wages and working conditions. The strike impacted production and highlighted labor relations challenges. #labor #strike
1985 CE
Grupo México Acquires ASARCO's Stake in SPCC
Grupo México, a Mexican mining conglomerate, acquired ASARCO's stake in SPCC, marking the beginning of its control over the Peruvian operations. This acquisition set the stage for future integration. #acquisition #GrupoMexico
1990 CE
Privatization of SPCC? Actually, SPCC was always privately held but in 1990s changes
Throughout the 1990s, SPCC underwent ownership restructuring. In 1990, Grupo México increased its stake, eventually gaining majority control. The company also began modernizing its facilities. #restructuring #ownership
1994 CE
Merger of SPCC with Minera México? Actually later
In the mid-1990s, Grupo México consolidated its copper assets, but the key merger that created Southern Copper Corporation occurred later. For now, SPCC continued as a separate entity. #merger #consolidation
1995 CE
Launch of SX-EW Plant at Toquepala
SPCC commissioned a solvent extraction-electrowinning (SX-EW) plant at Toquepala to produce cathode copper from oxide ores, expanding its product range and efficiency. #technology #copper
1999 CE
Grupo México Acquires Full Control of SPCC
Grupo México purchased the remaining stakes from minority shareholders, gaining full ownership of SPCC. This allowed for strategic integration with its Mexican operations. #acquisition #control
2004 CE
Listing on BVL and NYSE
Southern Copper Corporation began trading on the Bolsa de Valores de Lima (BVL) and the New York Stock Exchange under ticker SCCO, becoming a major player in global copper markets. #IPO #stockmarket
2004 CE
Creation of Southern Copper Corporation
Southern Copper Corporation was formed through the merger of SPCC and Minera México's copper assets, creating a single entity listed on the New York Stock Exchange. The merger combined Peruvian and Mexican operations under one umbrella. #merger #corporation
2005 CE
Acquisition of Minera Mexico's Copper Assets
As part of the merger, Southern Copper integrated Minera México's copper mines, including La Caridad and Cananea, expanding its production capacity and reserves. #acquisition #copper
2006 CE
Record Copper Prices Boost Revenues
Soaring copper prices on global markets led to record revenues for Southern Copper, allowing for increased investment in expansion projects and shareholder returns. #copper #prices
2007 CE
Expansion of Ilo Smelter
Southern Copper invested in expanding the Ilo smelter to increase its processing capacity and reduce emissions, aligning with environmental standards. #smelter #expansion
2008 CE
Global Financial Crisis Impact
The 2008 financial crisis caused copper prices to plummet, leading Southern Copper to cut production and defer expansion projects. The company maintained profitability through cost-cutting. #financialcrisis #copper
2009 CE
Tía Maria Copper Project Announcement
Southern Copper announced the Tía Maria copper mine project in Peru, expected to produce 120,000 tons annually. The project faced significant opposition from local communities and environmental groups. #mining #Peru )
2011 CE
Exploration at Los Chancas
Southern Copper began exploration at the Los Chancas copper project in Peru, an undeveloped deposit with significant potential. The project added to the company's long-term growth pipeline. #exploration #copper
2012 CE
Environmental Dispute at Buenavista del Cobre
A spill of copper sulfate at the Buenavista mine (Cananea) in Mexico led to environmental fines and community protests. The incident highlighted regulatory and environmental challenges. #environment #spill
2013 CE
Production of 688,000 Tons of Copper
Southern Copper reported record copper production of 688,000 tons, driven by efficiency improvements and expanded operations in Peru and Mexico. #production #record
2014 CE
Appointment of Oscar González Rocha as CEO
Oscar González Rocha became CEO, leading the company through a period of expansion and operational optimization. He had previously served in various executive roles within Grupo México. #CEO #leadership
2015 CE
Investment in New SX-EW Plants
Southern Copper invested in new SX-EW plants at its Mexican operations to increase cathode copper production from oxide ores, reducing costs and expanding output. #investment #technology
2016 CE
Share Buyback Program Announced
Southern Copper announced a share buyback program worth $1 billion, signaling confidence in its financial health and commitment to returning value to shareholders. #buyback #shareholder
2017 CE
Buenavista Expansion Completed
The Buenavista del Cobre mine expansion was completed, increasing milling capacity and extending mine life. The expansion included a new concentrator and SX-EW plant. #expansion #Mexico
2018 CE
Tía Maria Project Faces Protests
Intense local protests against the Tía Maria project in Peru led to its suspension, with concerns over water usage and environmental impact. The project remained stalled. #protest #Peru )
2019 CE
Record Net Income of $2.7 Billion
Southern Copper reported a record net income of $2.7 billion, driven by strong copper prices and increased production. The company's operational efficiency contributed to high margins. #financial #record
2020 CE
Pandemic Impact and Operational Resilience
During the COVID-19 pandemic, Southern Copper maintained operations with strict health protocols, though production dipped slightly. The company continued to invest in growth projects. #COVID19 #resilience
2021 CE
Acquisition of Rio Tinto's Stake in Peruvian Mine? Not exactly
In 2021, Southern Copper focused on advancing its pipeline projects, including Los Chancas and Tía María. The company also faced ongoing negotiations with the Peruvian government over tax and royalty terms. #investment #Peru
2022 CE
Copper Price Volatility and Profit Decline
Despite high copper prices early in 2022, later declines impacted Southern Copper's profits. The company continued to pay dividends and invest in sustainability initiatives. #copper #profit
2023 CE
Tía María Project Receives Key Permit
The Peruvian government granted a construction permit for the Tía María mine, but local opposition remained strong. The project's future uncertain. #permitting #Peru
2024 CE
New CEO Appointment
Southern Copper appointed a new CEO, Raúl Jacob, as part of a leadership transition. Jacob previously served as CFO and was expected to continue the company's growth strategy. #CEO #leadership
2024 CE
Financial Performance in 2024
In 2024, Southern Copper reported strong financial results due to high copper demand and stable operations. The company also advanced exploration at Los Chancas and other projects. #financial #results
