Southern Copper evaluates $680 million expansion of Peru’s Cuajone mine
Southern Copper is studying a $680 million upgrade to its Cuajone operation in southern Peru that would raise daily milling capacity by one‑third to 120,000 tonnes. The plan targets an average yearly output of about 55,000 tonnes of copper and 1,400 tonnes of molybdenum. The company has not set a final investment decision, but expects to decide on the scale of the project in early 2027. The expansion is intended to offset a 2.9% drop in copper production during the first nine months of 2026 caused by lower ore grades.
Why it matters
If the expansion proceeds, Southern Copper could increase its copper supply and improve margins, which may support the share price and the company’s long‑term production targets. The decision timing in early 2027 will affect capital allocation for the rest of the decade.
Key facts
- 1The proposed upgrade would lift milling capacity from 90,000 to 120,000 tonnes per day, a 33% increase. mining.com
- 2The expansion is expected to generate roughly 55,000 tonnes of copper and 1,400 tonnes of molybdenum each year. northernminer.com
- 3Copper output fell 2.9% to 693,602 tonnes in the first nine months of 2026. mining.com
- 4Southern Copper forecasts copper production of 911,400 tonnes for 2026 and about 900,000 tonnes for 2027. northernminer.com
- 5The company plans to choose the scale of the Cuajone expansion in early 2027, according to CFO Raúl Jacob. northernminer.com
- 6Southern Copper’s broader capital program exceeds $15 billion this decade, with more than $10.3 billion potentially allocated to Peruvian projects. mining.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.