Tia Maria copper mine advances as Peru copper pipeline grows

Tia Maria copper mine

The Tia Maria copper mine has reached a key milestone, with construction 23pc complete and production targeted for 2027. Southern Copper views the Tia Maria copper mine as a cornerstone of its Peruvian growth strategy. As a result, the Tia Maria copper mine could become a major new source of copper supply in a tightening global market.

Tia Maria copper mine moves toward 2027 start-up

Southern Copper has completed most access roads and platforms, and will soon begin pre-stripping at La Tapada, the main pit. The $1.8bn project is designed to produce 120,000 t/yr of copper once fully ramped up. Peru’s energy and mines ministry recently approved the production permit, clearing a major regulatory hurdle.

Over the first 20 years of operation, Southern Copper expects about $18.2bn in export revenues at current prices. The mine should also generate around $3.8bn in taxes and royalties, reinforcing its fiscal importance for Peru. Therefore, Tia Maria sits at the intersection of corporate growth, export earnings and regional development.

Southern Copper deepens its Peruvian copper portfolio

While Tia Maria advances, Southern Copper’s existing Peruvian open-pit mines face short-term headwinds. Third-quarter production from Toquepala and Cuajone fell by 8.4pc and 5.6pc, respectively, leading to a 7.3pc quarter-on-quarter decline. This context increases the strategic value of bringing new assets like Tia Maria on stream.

Beyond Tia Maria, Southern Copper is building a multi-asset pipeline in Peru. The Los Chancas project, backed by $2.6bn in investment, is expected to start in 2030–2031 and produce 130,000 t/yr of copper and 7,500 t/yr of molybdenum. However, the company must first regain full control of the project area from illegal miners. Michiquillay adds further growth, with planned output of 225,000 t/yr of copper from 2032 and a $2.5bn capital plan. Together, these projects position Southern Copper as a long-term anchor of Peruvian copper supply.

The Metalnomist Commentary

Tia Maria’s progress shows how long-gestating copper projects are finally moving toward execution in Peru. For Southern Copper, synchronising Tia Maria with Los Chancas and Michiquillay turns the country into a multi-decade growth platform. The key risk now lies less in geology and more in social, permitting and security dynamics around these high-profile assets.

Tia Maria copper mine production permit reshapes Peru’s copper future

Southern Peru Copper

The Tia Maria copper mine production permit marks a major turning point for Peru’s copper pipeline. Peru’s energy and mining ministry has cleared Southern Peru Copper to begin production at the long-delayed project. As a result, a stalled $1.8bn investment is now back on track, with first output targeted for 2027.

Political shift unlocks stalled Peruvian copper project

The Tia Maria copper mine production permit is one of the first significant decisions under president Jose Jeri. His new cabinet inherits a project blocked since 2019 by intense community resistance and criticism of its environmental impact study. However, regulators approved an updated study last year after the company dropped plans to use a desalination plant as its main water source.

Meanwhile, the permit comes amid national demonstrations against the new administration, including protests in Arequipa. That context raises the risk that opposition could re-emerge as construction ramps up. Therefore, Southern Peru Copper will need strong community engagement if it wants to avoid renewed roadblocks.

Southern said it expects to restart construction before year-end, targeting 120,000 t/yr of copper output. The Tia Maria copper mine production permit thus adds a sizeable greenfield project to Peru’s medium-term supply outlook. The mine would join Quellaveco — commissioned in 2022 — as the country’s newest large copper operation.

Peru copper supply, community risk and market impact

Peru remains one of the world’s top copper producers, with 1.8mn t output so far this year. However, production fell by 2pc in August versus a year earlier, underlining operational and social headwinds. Southern is currently the country’s second-largest copper producer, at 15pc of national output, narrowly behind Las Bambas.

As a result, successful delivery of Tia Maria would strengthen Peru’s role in meeting future copper demand. The project’s 120,000 t/yr could help offset disruptions elsewhere in the Andean copper belt. Yet social licence remains the key variable, especially in water-stressed regions with strong local opposition.

Global buyers and traders will watch whether project execution proceeds without major conflict. Any renewed escalation around Tia Maria could trigger further delays or even another suspension. Therefore, the project now sits at the intersection of politics, community relations and global copper supply security.

The Metalnomist Commentary

Tia Maria’s approval signals that Lima is willing to push strategic mining projects despite social and political tension. If Southern can stabilise community relations, the project will reinforce Peru’s standing as a core long-term copper supplier. But any misstep could become a cautionary tale on how environmental trust and local consent now define project viability.

Southern Copper Resumes Tia Maria Project in Peru with Revised Investment

Southern Copper

Southern Copper, a subsidiary of Grupo Mexico, is moving forward with its Tia Maria copper mining project in Peru after a delay of several years due to community opposition. The company has revised its initial investment estimate to $1.8 billion, up from the original $1.4 billion, signaling a renewed commitment to this controversial project.

Tia Maria: A Controversial Project Set to Boost Copper Production

The Tia Maria project, located in the Arequipa region of Peru, is expected to produce around 120,000 metric tonnes of copper annually. Despite its potential, the project has faced significant opposition due to concerns over its environmental impact, which were raised in its original 2014 environmental impact statement. In response to these concerns, Southern Copper has made several changes, including updating the environmental study. This update was approved in November 2023 and includes the decision to abandon plans for a desalination plant as the primary source of water for the project.

The project’s first phase of construction, scheduled for this year, will focus on developing essential infrastructure such as roads, access points, railways, and temporary encampments. A 59km enclosure has already been established around the main property.

Economic Impact and Future Prospects

Once fully operational in 2027, Tia Maria is projected to generate significant economic benefits. The project will create 764 direct jobs and an additional 4,800 indirect jobs. Southern Copper expects to export $17.5 billion worth of copper over the first 20 years of the project’s operation. This production boost comes at a time when Peru continues to be one of the world’s top copper producers.

Southern Copper's commitment to the Tia Maria project follows a positive year for the company. In 2024, the company reported a record $11.4 billion in net sales and a profit of $3.4 billion. This growth was driven by higher copper prices and increased sales of molybdenum, zinc, and silver.

Challenges at Los Chancas

In addition to Tia Maria, Southern Copper is developing the Los Chancas project in the Apurimac region, which is expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually once operational in 2031. However, the project has been delayed due to illegal mining activities in the area. Southern Copper is working closely with Peruvian authorities to address this issue and plans to restart environmental impact, hydrogeological, and geotechnical studies once the situation is resolved.

Peru’s Tia Maria Copper Project Continues to Face Delays

Southern Copper's Tia Maria project in Peru remains delayed despite efforts by the government to push it forward, according to mining and energy minister Romulo Mucho Mamani. "In 2024, we have attempted in every way to get Tia Maria off the ground, but it will take a bit longer," Mamani said, referencing local opposition to the project. 

Tia Maria, with an estimated cost of $1.4 billion and a projected capacity of 120,000 metric tonnes per year, has faced community resistance since 2009. Protests over the years have resulted in deaths and injuries, though their intensity has waned in recent years. 

Mamani noted that getting the project started is "a matter of time" as conditions are already in place. In addition to Tia Maria, the government plans to approve two other mining projects in 2024, including Zafranal and Pampa de Pongo.

Peru Copper Project Resumes Operations After Prolonged Hiatus

On Monday, Southern Copper resumed operations at its Tia Maria copper mine project in Peru after a prolonged hiatus due to opposition from local residents. The Mexico-based company had suspended activities since 2019 due to this opposition. With the resumption of efforts, copper production is expected to start before 2027, according to executive president Oscar Gonzalez.

The resumption of the project has been carefully planned, with Southern Copper consulting with government officials to determine 'the most appropriate time to restart operations at Tia Maria'.

Tia Maria, one of Peru's most controversial mining projects, has faced significant community opposition since 2009, resulting in numerous injuries and the tragic deaths of at least six civilians and one police officer. The project's delay has also disrupted a vital source of copper production for Peru, the world's second largest copper producer.

However, protests have tailed off in recent years.

Speaking at a national mining conference last month, Romulo Mucho Mamani, the minister of mining and energy, said that the revival of the project had made 'spectacular progress' this year. He stressed the urgent need to accelerate Peru's stalled mining projects to boost the country's copper output, a critical mineral for the global energy transition.

Mucho Mamani predicted that Peru's copper production would rise from 2.7 million tonnes a year in 2023 to nearly 3 million tonnes a year by the end of 2024.

Reflecting on past delays, Mucho Mamani said: "If the Conga and Tia Maria projects had not been delayed or stopped in 2011, we would be talking about copper production of no less than 4 million tonnes per year, perhaps even more.

The Tia Maria project, with an estimated total investment of $1.4 billion, is expected to produce 120,000 tonnes of copper per year.

Peru boosts Grupo Mexico's 2Q Cu, Zn output

Mining and transport conglomerate Grupo Mexico boosted its copper production in the second quarter this year, driven by increases in its Peruvian and Mexican operations.

The company produced 270,750 metric tonnes (t) of copper in the second quarter, up by 4.7pc from the year earlier period. The firm produced 538,740t in the first half, a 5.3pc increase from the same period in 2023.

The increase reflects increased copper production in Peru, as well as higher output at its Buenavista zinc concentrator in Mexico.

"Higher [copper] production in Mexico was partially offset by a decrease in [Arizona-based US subsidiary] Asarco's production," Grupo Mexico said.

Total copper sales in the quarter increased by 2.5pc to 260,050t from a year earlier.

The company resumed its Tia Maria copper project in Peru in July this year and said it expects to produce 120,000 t/yr of solvent extraction and electrowinning copper cathodes when it starts operations in 2027.

The company produced 29,420t of zinc in the second quarter, up by nearly 71pc on the year, also driven by the Buenavista Zinc concentrator. Zinc sales rose by 78pc to 39,000t.

Molybdenum production in the second quarter rose by almost 21pc to 7,655t from the prior-year period, while sales increased by 21pc to 7,640t.

The production and sales hikes came with higher average prices for the metals, the company also said.

Average zinc prices of $1.29/lb in the second quarter were up by 12pc from the same three-month span in 2023, based on London Metal Exchange numbers.

The average copper price of $4.55/lb in the second quarter was 18pc higher than the prior-year period, according to Comex figures cited by Grupo Mexico.

Second quarter total profits rose by nearly 60pc to $1.06bn on the year, with revenues increasing by 27.4pc to $4.4bn in the same period.