Southern Copper’s $1.8B Tía María mine gets green light

[Redator]

Southern Copper (NYSE, LON: SCCO) has secured a long-awaited licence for its $1.8-billion Tía María copper project in Peru, marking a major step forward after years of social unrest and political delays.

Peru’s Ministry of Energy and Mines (Minem) approved the mining licence last week, clearing the way for the project to enter the exploitation phase.

Located in the Islay province of the Arequipa region, the project is expected to reignite confidence in Peru’s mining sector and potentially unlock other stalled developments across the country.

Tía María faced years of delays due to local opposition over environmental concerns. Protests between 2011 and 2015 left six people dead and forced the project’s suspension.

Although the government approved the mine in 2019, it tied progress to the restoration of social stability. Southern Copper resumed development in 2024 after local tensions eased.

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

With the licence now in hand, the company can begin pre-mining work and pit stripping. The project is 25% complete, with most progress centred on auxiliary facilities and the treatment plant. The initial construction phase, covering access roads and platforms, was 90% finished as of July.

Tía María is expected to begin production by late 2026 or early 2027, delivering 120,000 tonnes of copper annually over a projected 20-year lifespan. The output would secure Peru’s position as the world’s third-largest copper producer.

$7 billion worth of projects

In 2024, Southern Copper Peru produced 414,000 tonnes of copper, ranking it as the country’s second-largest producer. But the broader mining landscape remains constrained. A recent study found that 31% of Peru’s untapped copper production capacity, equal to around 1.8 million tonnes per year, is effectively “off-market” due to environmental, social, or governance challenges.

The Peruvian Institute of Economics (IPE), an industry-backed think tank, estimates that about $7 billion worth of copper projects are stalled due to illegal mining invasions. Impacted developments include Southern Copper’s Michiquillay and Los Chancas projects, as well as First Quantum’s Haquira copper project. IPE also forecasts illegal gold exports could reach $12 billion in 2025.