Southern Copper Corp.

Southern Copper Corp. is a senior copper producer headquartered in Phoenix, United States, operating primarily in Mexico and South America. The company's portfolio consists of 16 projects, comprising 7 operating mines, 3 development, 4 advanced exploration, and 2 suspended projects. Key assets include Buenavista, La Caridad-Pilares Complex, Cuajone, and Toquepala. The business model is centered on being a large-scale, integrated producer with a high degree of vertical integration. This structure allows the enterprise to manage the entire production process, from ore extraction to the manufacturing of refined products, including the execution of most associated transport and logistics functions. Operations utilize modern, state-of-the-art mining and processing methods, including global positioning systems and computerized mining processes to enhance efficiency. The organization's considerable operational scale positions it as a major industry participant. Management's strategy focuses on rigorous cost control and continuous production enhancement to maintain profitability throughout commodity price cycles. The company's marketing approach prioritizes the development and maintenance of long-term customer relationships, with 80% to 90% of metal production typically sold under annual or longer-term contracts to end-users rather than on the spot market. This strategy is supported by a commitment to diversifying sales across different regions and customer bases, ensuring consistent demand fulfillment through substantial production capacity.

Strategic priorities are centered on long-term value creation through a combination of disciplined capital investment, targeted exploration, and cost reduction programs. A key objective is to increase production volume organically, with a formal growth plan aiming for significant expansion by 2032. Capital allocation is directed towards projects that increase production, decrease costs, or address social and environmental commitments, with the Board of Directors approving a detailed investment program annually. The entity's commercial strategy emphasizes securing long-term sales contracts, which cover 80% to 90% of production, to foster stable, direct relationships with end-users and reduce reliance on spot markets. Exploration efforts are actively pursued to replenish and expand the reserve base, with activities conducted near existing operations as well as in new prospective areas. Management's approach is designed to maximize financial performance during periods of high commodity prices while ensuring profitability and operational resilience during periods of low prices through stringent cost controls and production enhancements.

Executive leadership is characterized by extensive industry tenure, with the Chairman of the Board serving since 1999 and the President and CEO serving in that capacity since 2004. The Vice President of Finance, CFO, and Treasurer has been with the organization since 1992 and has received multiple industry recognitions. The governance framework is structured to ensure robust oversight and compliance. A formal Code of Ethics requires annual certification from all employees, guiding professional conduct and business dealings. A key governance mechanism is the requirement under the Certificate of Incorporation for a committee of independent directors to review any Material Affiliate Transaction exceeding $10 million. The Board of Directors' Audit Committee provides oversight of risk management practices, including cybersecurity. The company has also established a comprehensive Securities Law Compliance Policy to govern the handling of material nonpublic information and regulate trading activities by insiders, reinforcing its commitment to transparency and regulatory compliance.

The organization's sustainability framework is aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), earning a perfect score of 100 in this category from S&P Global's Corporate Sustainability Assessment in 2024. For the 6th consecutive year, the company was included in the Dow Jones Sustainability Index. All operations have achieved ISO 14001 certification for environmental management and ISO 45001 for occupational health and safety. A key initiative is the implementation of the ICMM's Global Industry Standard on Tailings Management. The entity's 2025 Strategic Workplace Plan focuses on fostering equality and well-being through 6 initiatives covering communication, training, and infrastructure adaptation. Community development is managed through a 3-component model focused on responsible coexistence, economic development, and human development, supported by a formal grievance mechanism. In 2024, the company invested over $4.8 million in employee development, delivering more than 646,000 hours of training, and maintains a workforce retention rate of approximately 90%.

The company operates as a majority-owned, indirect subsidiary of Grupo Mexico S.A.B. de C.V., which held an 88.9% interest through its wholly-owned subsidiary, Americas Mining Corporation, as of December 31, 2024. A key structural event was the 2005 acquisition of Minera Mexico, S.A. de C.V. from Americas Mining Corporation, which now serves as a principal holding company for a significant portion of the enterprise's operations. These operations are conducted through subsidiaries grouped into 3 distinct units. In 2018, the company signed a contract for the acquisition of the Michiquillay project, expanding its portfolio of development assets. The corporate structure also includes a registered branch entity to conduct operations in one of its primary jurisdictions. A share repurchase program, initially authorized in 2008 and subsequently increased to $3 billion, has resulted in the purchase of 119.5 million shares, influencing the ownership concentration of the parent company.